Uganda
• VAT on exports - All exports of goods and services are zero-rated for VAT. However, exporters are required to be VAT registered. This enables them to re-claim VAT expended on all inputs used in the process of producing and processing exports. • Duty drawback - The rationale for duty drawback is to enable manufacturers, and other exporters, to compete in foreign markets without the handicap of including costs of imported inputs in the final export price (the duty paid on imported inputs). This allows exports to draw back up to 100% duties paid on materials inputs imported to produce for export. • Manufacturing under bond - This scheme allows manufacturers to seek customs license to hold and use imported raw materials intended for manufacture for export in secured places without payment of taxes. It makes available working capital, which would have been tied up through paying duties immediately after importation. • Others - Other incentives are available under the Investment Code as administered under the Income Tax Act 1997, by URA for export-oriented investment projects. Exchange Controls Although foreign exchange repatriations from Uganda are not restricted, any person seeking to repatriate funds in excess of Ushs50 million should obtain a tax clearance certificate from the URA.
Interest and Currency Exchange Rates Prime Overdraft Rate: 23.34% (December 2011) Bank Rate: 29.00% (December 2011) 91-day Treasury Bill Rate: 23.39% (December 2011) (source: Bank of Uganda)
Currency: Ugandan Shilling (Ushs/UGX) R1 = Ushs305.646 (December 2011) US$1 = Ushs2 456.47 (December 2011) (source: Oanda)
Key Economic Statistics GDP (approx.): US$16.386 billion (2011) US$17.011 billion (2010) (source: IMF)
Market Capitalisation: US$3.556 billion (31 December 2008) US$5.887 billion (31 December 2007 December 2006) (source: Economy Watch)
Rate of Inflation: 6.064% (December 2011) 9.400% (average 2010) (source: IMF)
Trade Relations • East African Community (EAC). • Conotou. Notes: 1. The Cotonou Agreement provides the framework for the European Union’s development funding to Uganda. The Revised Agreement of 2010 has now been tabled before Cabinet for approval.
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