Agency
The government has clarified that the newly introduced tax holiday for start-ups is intended to encourage small and medium enterprises (SMEs) to formalise, improving their growth prospects and adding to Uganda’s tax register.
Solomon Rukundo, a Tax Specialist at the Ministry of Finance, Planning, and Economic Development, said the three-year tax holiday targets businesses registered after July 1, 2025, operating as sole proprietorships or partnerships with capital investment below UGX 500 million.
Formalisation, he explained, would allow SMEs better access to capital, contracts, and management support, while also broadening the tax base.
Catherine Poran, Chief Executive of Stanbic Business Incubator Limited (SBIL), emphasised that compliance remains a major challenge for Ugandan SMEs.