Article Index
6. Land Taxation in Uganda
The principal legislation on tax matters in Uganda is the Income Tax Act Of Uganda deriving it authority from Art. 152 of the Constitution of the Republic of Uganda that provides that no tax shall be levied except by express provision of an Act of Parliament. The Income Tax Act therefore provides for land taxation among other things.
In respect to taxation of land, two aspects come into play vide: land tax and property tax. Land tax is different from property tax since the former is a levy on the unimproved value of the land and thus an advalorem tax on land excludingthe value of the buildings or other capital improvements while the latter are taxes on the combination of land, buildings and improvements to the site.
The Income Tax Act Cap 340 under S.2(ddd) defines rental income in relations to an individual for a year of income to mean the total amount of rent derived by the individual for a year of income from the lease of immovable property in Uganda by the individual with the deduction of any expenditures and losses incurred by that individual in respect of that property. This definition caters for the property on the land. The Act also imposes property tax on every person with property income under S. 20 which include land. Capital gains tax is also another tax paid in respect to land.
The Stamps Act Cap 342 in its schedule provides for stamp duty to be paid in respect to caveats lodged under the Registration of Titles Act or any other law relating to registration of title to land under item 19, duty shall also be paid in respect to any mortgage on land under item 31, gift which may include land under item 35, lease under item 38, surrender of a lease, under item 62. All this is duty payable in respect to transactions pertaining land.