Overview:

Stanbic Business Incubator hosts a masterclass to demystify Uganda's 2025-2026 tax reforms for SMEs, covering the new tax holiday, capital gains, and digital service taxes.

KAMPALA, UGANDA — Stanbic Business Incubator Limited hosted its September Masterclass to help small and medium-sized enterprises, or SMEs, understand Uganda’s new tax measures for the 2025-2026 fiscal year.

The session featured Solomon Rukundo, a tax specialist from the Ministry of Finance, Planning and Economic Development, who discussed the new laws under the theme, “Navigating Uganda’s FY 2025-2026 Tax Reforms: Strategic Insights for Businesses and Investors.”

One key reform is a three-year tax holiday for startups. To be eligible, a business must have registered after July 1, 2025, operate as a sole proprietorship or partnership, and have a capital investment of less than UGX 500 million.

“This incentive is designed to reward new formalized businesses, but it is not a blanket exemption,” Rukundo said. “Only one business per individual will be eligible, even if they own multiple entities.”

The masterclass also covered capital gains tax and the Digital Services Tax, or DST. Rukundo explained that capital gains tax applies to the disposal of any business assets except for depreciable assets and inventory.

Regarding digital services, Rukundo advised SMEs to be aware of how tax policy affects non-resident service providers, such as those that offer advertising or cloud-based platforms. He noted that while there’s no direct obligation on SMEs, they might see marginal fee increases as providers recover the DST.

Catherine Poran, chief executive of Stanbic Business Incubator, stressed that tax compliance is a major challenge for many Ugandan SMEs, with many failing because of regulatory issues that could have been avoided.

“Tax compliance is not just a legal requirement; it is a marker of professionalism,” Poran said. “As Stanbic Business Incubator, we aim to equip entrepreneurs not just with capital and connections — but with the knowledge to build resilient, sustainable businesses.”

Stanbic Business Incubator holds masterclasses monthly as part of its mission to support SME growth through capacity-building and policy literacy.