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. 5 year Income Tax Exemption for Free Zone Developer whose investment capital is at least USD 100,000,000 (United States Dollars One Hundred Million) from the date of commencement of business.
  2. 5 year Income Tax Exemption for Free Zone Operator whose investment capital is at least USD 15,000,000 (United States Dollars Fifteen Million) for Foreigners and USD 5,000,000 (United States Dollars Five Million) for Ugandan Citizens from the date of commencement of business.
  3. 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 and spare parts).
  4. Unrestricted remittance of profit after tax.
  5. 10 year tax holiday for a Developer of Free Zone whose investment capital is at least USD 200,000,000 (Two Hundred Million United States Dollars) for a period of ten years from the date of commencement of construction.
  6. 10 year tax holiday for an Operator in a Free Zone whose investment capital is at least USD 30,000,000 (Thirty Million United States Dollars) in the case of a foreigner or USD 10,000,000 (Ten Million United States Dollars) in the case of a Ugandan citizen for five years from the date of commencement of business.
  7. Exemption from tax on income from Agro-processing.
  8. Exemption on income derived from the operation of aircraft in domestic and international traffic or the leasing of aircraft.
  9. Exemption from tax on plant and machinery used in the Free Zones for 5 years and 1 day upon disposal.
  10. Exemption from all taxes, levies and rates on exports from the Free Zones.
  11. Exemption from import duties and taxes on all goods entering a Free Port Zone.
  12. VAT exemption on the following supplies i.e. animal feeds and premixes crop extension services, irrigation works, sprinklers and ready to use drip lines, deep cycle batteries and composite lanterns.
  13. Exemption of Withholding Tax on petroleum, petroleum products, plant and machinery, human or animal drugs and supply/ importation of raw material.
  14. Initial allowance for eligible property/industrial buildings situated 50Km from Kampala put into use for the first time (rates are 50% and 20% respectively).

Non-fiscal Incentives

  1. Access to physical amenities, infrastructure, manpower and training.
  2. Warehousing of domestic goods which are not to be exported provided that the Warehousing facilities of the Free Zone users are underutilised.
  3. One Stop Center for reducing Red Tape Simple procedure.
  4. On site customs inspection of buildings and premises in the Free Zone.
  5. On site customs inspection of natural persons, vehicles, vessels and aircraft entering and leaving the Free Zone.