The Ministry of Finance has proposed sweeping amendments to Uganda’s Stamp Duty Act, Cap.339, that will require financial services firms to file monthly returns and retain transaction records for at least five years, in a move aimed at strengthening tax compliance and boosting domestic revenue mobilization.
The proposed changes, currently before Parliament, were tabled by Minister of State for Finance Henry Musasizi, who said the reforms are intended to enhance transparency and improve the efficiency of stamp duty administration.
Under the amendments, all entities engaged in financial services will be required to submit monthly stamp duty returns to the Commissioner General of the Uganda Revenue Authority (URA). This marks a shift from the current practice, where reporting obligations are less frequent and, in some cases, inconsistent across the sector.
The proposed law also introduces stricter record-keeping requirements, compelling taxpayers to retain documents related to stamp duty transactions for a minimum of five years. Officials argue that this will facilitate audits and reduce disputes between taxpayers and the revenue authority.
In addition, the Ministry is seeking to revise Schedule 2 of the Act to adjust stamp duty rates on selected transactions, including transfers and motor vehicle registration. While specific rate changes have not been publicly detailed, the government says the revisions are necessary to align the tax regime with evolving market conditions.
If approved, the amendments are expected to tighten enforcement and close revenue leakages within Uganda’s financial services sector, which remains a key pillar of the economy.