Uganda Inheritance and Gift Tax Guide 2026
Uganda does not impose inheritance tax, estate duty, or gift tax. There are no taxes on the transfer of wealth through inheritance or gifts. However, income tax or capital gains tax implications may arise if the gifted asset is later sold, and certain business-related gifts may be subject to tax rules.
No Inheritance Tax
Uganda has no inheritance tax or estate duty. Assets passing to beneficiaries upon death are not subject to tax. This makes Uganda one of the many African countries that do not tax inheritances. Beneficiaries receive assets free of any inheritance tax liability, though they may inherit the cost base of the assets for future capital gains purposes.
No Gift Tax
Uganda does not impose a gift tax. Individuals can make gifts to family members, friends, or charities without incurring gift tax. However, if the gift is made in the course of business or employment, it may be treated as income in the hands of the recipient. Gifts of business assets may trigger capital gains tax if there is a deemed disposal at market value.
Tax Implications of Gifts
- Business gifts: Gifts made in the course of business may be deductible expenses for the giver but taxable benefits for the recipient.
- Asset transfers: If property is transferred as a gift, the recipient inherits the donor's cost base for capital gains purposes. Future disposals will be taxed on the full gain from the donor's original cost.
- Stamp duty: Transfers of property by gift may still attract stamp duty at 1% of the market value.
Charitable Donations
Donations to approved charitable organisations in Uganda may qualify for tax relief. Corporate donors can deduct qualifying charitable donations from taxable income up to certain limits. Individuals can also claim relief for donations to approved charities.
Disclaimer
This guide provides general information. Tax laws may change. Consult a qualified Ugandan tax advisor or URA for your specific situation.