The Government has provided for a comprehensive package of incentives for holders of Free Zone Developer, Operator or Manager Licenses which include:

Fiscal Incentives

  1. Exemption from taxes and duties on all export processing zone imported inputs that are for the exclusive use in the development and production output of the business enterprise (raw materials, machinery and spare parts)
  2. Unrestricted remittance of profit after tax
  3. Tax holiday for 10 years on exportation of finished Consumer and Capital goods
  4. Exemption from tax on income from agro-processing
  5. Exemption from capital gains tax on plant and machinery used in the Free Zones for 5 years and 1 day upon disposal
  6. Exemption from all taxes, levies and rates on exports from the Free  Zones
  7. Exemption on personal income of a person offering Technical Assistance under a Technical Assistance Agreement
  8. VAT exemption on selected services and supplies
  9. A deduction of 50% off the cost base of the property is allowed on eligible property put into service for the first time outside a radius of 50km from the boundaries of Kampala.

Non-fiscal Incentives

  1. Economies of Scale for the business entities resulting from well-planned Zoning and Clustering of the business activities nin Free Zones
  2. Warehousing of domestic goods provided that the warehousing facilities of the Free Zone are under-utilised
  3. Onsite Customs inspection of buildings, premises, vehicles, vessels and aircrafts entering and leaving the Free Zone
  4. Free land (based on availability) for development of Free Zones
  5. Timely turnaround period in securing business registration
  6. Enhanced Technology uptake
  7. Timely turnaround period for processing work permits for expatriates
  8. Business facilitation and afercare services in the acquisition of secondary licences, permits and approvals from other Government Agencies
  9. Timely processing of Secondary Licences for Applicants
  10. Serviced physical infrastructure facilities and buildings within the Public Free Zones.