By Ankit Jangla, Bruno Kalibbala and Bruno Edwin Amanya
The Stamp Duty (Amendment) Bill, 2026, introduces several measures designed to enhance administrative efficiency, modernise record-keeping requirements, and expand the tax base to include rapidly growing sectors. These proposals are intended to provide the Uganda Revenue Authority (URA) with better tools for monitoring compliance while simultaneously generating additional revenue from high-volume transactions, such as land transfers and vehicle registrations.
If passed by Parliament, these amendments will take effect on 1st July 2026. Stakeholders, particularly those in the financial services and real estate sectors, should take note of the new reporting obligations and increased costs associated with these changes.
Expanded Reporting for Financial Service Providers
A major administrative shift proposed in the Bill is the introduction of Section 7A, which requires all persons carrying on the business of financial services to file monthly returns. Currently, this monthly reporting obligation is limited to insurance companies. The proposed amendment extends this requirement to the broader financial services sector, mandating that they report all sums received in respect of stamp duty paid on various instruments.
This move is intended to enable the Commissioner General to more accurately monitor compliance and ensure that the proper duty is being paid in a timely manner. To enforce this, the Bill proposes a penalty of 2% simple interest per month on any duty payable for those who fail to file these returns. This shift emphasises the URA’s focus on real-time data collection to improve revenue efficiency within the financial sector.
Standardising Record-Keeping Obligations
The Bill also seeks to provide much-needed clarity on the retention of documents for stamp duty purposes through the introduction of Section 62(2). Historically, the Stamp Duty Act has not specified a definitive period for how long records should be maintained, which has often complicated the audit process for older transactions. The new proposal mandates that any person required to maintain documents for stamp duty must retain them for a period of at least five years from the date of generation.
By establishing this clear five-year window, the government aims to simplify the audit trail for both the taxpayer and the URA. This alignment with other tax laws brings more consistency to the tax system and ensures that businesses have a clear legal standard to follow regarding their document archives.
Strengthening Governance and Environmental Responsibility: The 2026 Tax Procedure and Miscellaneous BillsIncreased Costs for Land and Share Transfers
For investors and property owners, one of the most significant changes is the proposed increase in the stamp duty rate upon the transfer of assets. Currently, the transfer of land and shares (that are not traded on the stock exchange) attracts a stamp duty of 1.5%. The Bill proposes to double this rate to 3% of the total value.
The primary rationale for this increase is to mobilise more revenue from the country’s active land market. While this will undoubtedly increase the transaction costs for real estate and private equity deals, the government views this as a necessary step to tap into the wealth generated by asset appreciation.
New Duties on Motor Vehicle Registrations
Finally, the Bill introduces a new stamp duty on the registration and transfer of motor vehicles, identifying this as a large and currently untapped tax base. The proposed rates are set at UGX 50,000 for motorcycles, tricycles, and quadricycles, and UGX 200,000 for all other motor vehicles.
While these new charges will increase the cost of vehicle ownership and transfer, the government expects the collection process to be relatively seamless, as it will be managed through the existing registration systems at the Ministry of Works and Transport. For the general public, this represents a new recurring cost in the secondary vehicle market that was previously exempt from stamp duty.
This article is an extract from the comprehensive Grant Thornton: Proposed Uganda Tax Amendments 2026commentary.
This article is co-authored by Ankit Jangla (Director – Tax), Bruno Kalibbala (Manager – Legal and Tax), and Bruno Edwin Amanya (Senior Associate).To access the full 2026 analysis or to consult on how these stamp duty shifts will impact your business, contact Grant Thornton Uganda today at +256 200 807 600 or info@ug.gt.com. Schedule a comprehensive tax health check now to ensure your
