Uganda is on the verge of introducing significant changes to its stamp duty laws that could impact financial services firms across the country. The Ministry of Finance has proposed amendments to the Stamp Duty Act, Cap. 339, which, if approved by Parliament, will require financial institutions to file monthly stamp duty returns with the Commissioner General at the Uganda Revenue Authority (URA).
The proposed changes were presented by Henry Musasizi, the Minister of State for Finance, who emphasized the need for stronger compliance and accountability in tax collection. Under the new rules, taxpayers will also be required to retain all documents subject to stamp duty for at least five years. This move aims to create a more transparent system and make it easier for authorities to verify transactions and ensure taxes are properly paid.
In addition to filing and record-keeping requirements, the government also plans to update Schedule 2 of the Act. This will involve revising the stamp duty rates payable on property transfers and motor vehicle registration. Officials say the adjustments are designed to modernize the tax system and align it more closely with current economic activity.
Financial experts say the reforms could significantly affect how banks, insurance companies, and other financial service providers operate. Monthly reporting and long-term document retention may increase administrative responsibilities, but they could also reduce the risk of disputes with the tax authorities.
Overall, these proposed amendments reflect Uganda’s ongoing effort to strengthen tax compliance and improve revenue collection. If passed, the changes will mark a new chapter in the country’s approach to stamp duty, ensuring that both businesses and individuals are better aligned with legal requirements while contributing fairly to the national revenue.
