Stamp Duty Act, 2014
Act 13 of 2014
- Published in Uganda Gazette 61 on 24 October 2014
- Assented to on 19 October 2014
- Commenced on 1 July 2014
- [This is the version of this document as it was from 1 July 2019 to 30 June 2020.]
1. CommencementThis Act shall be deemed to have come into force on 1st July 2014, except items 8 and 62(b) of Schedule 2, which shall come into force on publication of this Act.
Part I – Interpretation
2. InterpretationIn this Act, unless the context otherwise requires—“banker” includes a bank and any person acting as a banker under the Financial Institutions Act, 2004;“bill of exchange” means a bill of exchange as defined by the Bills of Exchange Act;“bill of exchange payable on demand” includes—(a)an order for the payment of any sum of money by a bill of exchange or promissory note, or for the delivery of any bill of exchange or promissory note in satisfaction of any sum of money, or for the payment of any sum of money out of any particular fund which may or may not be available, or upon any condition or contingency which may or may not be performed or happen;(b)an order for the payment of any sum of money; and(c)a letter of credit;“bill of lading” includes a “through bill of lading” but does not include a mate’s receipt;“bond” includes—(a)an instrument by which a person obliges himself or herself to pay money to another, on condition that the obligation shall be void if a specified act is performed, or is not performed, as the case may be;(b)an instrument attested by a witness and not payable to order or bearer, by which a person obliges himself or herself to pay money to another; and(c)an attested instrument by which a person obliges himself or herself to deliver grain or other agricultural produce to another;“chargeable” means an instrument chargeable under this Act or any other law in force in Uganda when the instrument was executed or, where several persons executed the instrument at different times, first executed;“cheque” means a bill of exchange drawn on a specified banker and payable on demand;“citizen” means—(a)a natural person who is a citizen of a Partner State of East African Community;(b)a company or a body of persons incorporated under the laws of a Partner State of the East African Community in which at least fifty-one percent of the shares are held by a person who is a citizen of a Partner State of East African Community;[definition of "citizen" inserted by section 2 of Act 10 of 2019]“Commissioner” means the Commissioner General appointed under the Uganda Revenue Authority Act;“conveyance” includes a conveyance on sale and every instrument by which movable or immovable property is transferred during the lifetime of the person transferring and which is not otherwise specifically provided for by this Act;“conveyance on sale” includes every instrument and every decree or order of a court by which any property, or any estate or interest in any property, upon its sale is transferred to or vested in a purchaser, or any other person on behalf of the purchaser or by the direction of the purchaser;“currency point” has the value assigned to it in Schedule 1;“debenture” has the meaning assigned to it in the Companies Act;“deed” includes an instrument which confers a right or passes an interest or gives a title or authority;“duly stamped” as applied to an instrument, means—(a)that the instrument bears an impressed stamp of the proper amount and that the stamp has been affixed or used in accordance with the law for the time being in force in Uganda;(b)stamped in any manner prescribed by the Commissioner;“executed” and “execution”, used with reference to instruments, mean “signed” and “signature” respectively;“impressed stamp” includes—(a)labels affixed and impressed by the officer;(b)stamps embossed or engraved on stamped paper; and(c)stamps of any other manner prescribed by the Commissioner;“instrument” includes a document by which a right or liability is, or purports to be, created, transferred, limited, extended, extinguished or recorded;“instrument of partition” means an instrument by which co-owners of any property divide or agree to divide the property in severalty and includes a final order for effecting a partition passed by any court and an award by an arbitrator directing a partition;“lease” has the meaning assigned to it under the Registration of Titles Act;“marketable security” means a security capable of being sold on a stock market;“mate’s receipt” means a document signed by an officer of a vessel evidencing receipt of a document of a shipment on board the vessel not being a document of title and issued as an interim measure until a proper bill of lading can be issued;“mortgage deed” includes an instrument by which, for the purpose of securing money advanced, or to be advanced, by way of loan, or an existing or future debt, or the performance of an engagement, one person transfers, or creates, to, or in favour of, another, a right over or in respect of specified property;“officer” means a person whose right or duty it is to require the performance of, to perform, the acts referred to in this Act;“policy of insurance” includes—(a)an instrument by which one person, in consideration of a premium, engages to indemnify another person against loss, damage or liability arising from an unknown or contingent event; or(b)a life policy, and a policy insuring a person against accident or sickness, and any other personal insurance;“policy of sea insurance” or “sea policy”—(a)means any insurance made upon a ship or vessel, or upon the machinery, tackle or furniture of a ship or vessel, or upon goods, merchandise or property of any description on board of a ship or vessel, or upon the freight of, or any other interest which may be lawfully insured in, or relating to, a ship or vessel; and(b)includes any insurance of goods, merchandise or property for transit which includes, not only a sea risk within the meaning of subparagraph (a), but also any other risk incidental to the transit insured from the commencement of the transit to the ultimate destination covered by the insurance;(c)where any person, in consideration of any sum of money paid or to be paid for additional freight or otherwise, agrees to take upon himself or herself any risk attending goods, merchandise or property of any description while on board of any ship or vessel, or engages to indemnify the owner of any such goods, merchandise or property from any risk, loss or damage, the agreement or engagement shall be deemed to be a contract for sea insurance;“power of attorney” includes an instrument empowering a specified person to act for and in the name of the person executing it;“promissory note” has the meaning assigned to it in the Bills of Exchange Act;“receipt” includes a note, memorandum or writing whether the note, memorandum or writing is or is not signed with the name of a person—(a)by which any money, or any bill of exchange, cheque or promissory note is acknowledged to have been received;(b)by which any other movable property is acknowledged to have been received in satisfaction of a debt;(c)by which a debt or demand, or any part of a debt or demand, is acknowledged to have been satisfied or discharged; or(d)which signifies or imports the acknowledgement;“Revenue Authority” means the Uganda Revenue Authority established under the Uganda Revenue Authority Act;“settlement” means a non-testamentary disposition in writing of movable or immovable property made—(a)in consideration of marriage;(b)for the purpose of distributing property of the settlor among his or her family or those for whom he or she desires to provide, or for the purpose of providing for some person dependent on him or her; or(c)for any religious or charitable purpose, and includes an agreement in writing to make such a disposition, and where any such disposition has not been made in writing any instrument recording, whether by way of declaration of trust or otherwise, the terms of any such disposition;“tribunal” means the Tax Appeals Tribunal established under the Tax Appeals Tribunal Act.
Part II – Stamp duty
Liability of instruments to duty
3. Instruments chargeable with duty
4. Several instruments used in single transaction of sale, mortgage or settlement
5. Instruments relating to several distinct mattersAn instrument comprising or relating to several distinct matters shall be chargeable with the total amount of the duties with which the separate instruments, each comprising or relating to one of such matters, would be chargeable under this Act.
6. Instruments coming within several descriptions in Schedule 2
7. Marine insurance contract to be expressed in marine policyA contract for marine insurance shall not be valid unless it is expressed in a marine policy in accordance with the law relating to marine insurance.
8. Persons carrying on insurance business to file returns
9. Stamp duty on capital of companies
Duty by whom payable
10. Expense of providing stampThe expense of providing the proper stamp shall be as set out in Schedule 3.
Stamps and the mode of using them
11. Duties, how to be paidExcept as expressly provided in this Act, all duties with which any instruments are chargeable shall be paid, and the payment shall be evidenced in a manner the Minister may prescribe.
12. Denoting dutyWhere the duty with which an instrument is chargeable, or its exemption from duty, depends upon the duty actually paid in respect of another instrument, the payment of the last-mentioned duty shall, if application is made in writing to the Commissioner for that purpose, and on production of both the instruments, be denoted upon the first-mentioned instrument by endorsement in the prescribed form by the Commissioner.
13. Provisions relating to duplicates and counterpartsThe duty on a counterpart of duplicates on an instrument other than a lease shall not be taken as paid or exemption granted, unless duty has been paid or exemption granted in respect of the original instrument.
Time of stamping documents
14. Instruments executed in UgandaAn instrument chargeable with duty which is executed by a person in Uganda shall be stamped within forty five days of execution.
15. Instruments executed outside Uganda
16. Bills and notes drawn outside Uganda
Valuations for duty
17. Conversion of amount expressed in foreign currenciesWhere an instrument is chargeable with duty in respect of any money expressed in a currency other than that of Uganda, the duty shall be calculated on the value of the money in the currency of Uganda according to the Bank of Uganda exchange rate applying between the currency and the Uganda Shilling on the date of execution of the instrument.
18. Stock and marketable securities, how to be valued
19. Effect of statement of rate of exchange or average priceWhere an instrument contains a statement of the current rate of exchange, or average price, as the case may require, and is stamped in accordance with the statement, it shall, so far as regards the subject matter of the statement, be presumed, until the contrary is proved, to be duly stamped.
20. Instruments reserving interestWhere interest is expressly made payable by the terms of an instrument, the instrument shall not be chargeable with duty higher than that with which it would have been chargeable had no mention of interest been made in the instrument.
21. Certain instruments connected with mortgages of marketable securities to be chargeable as agreements
22. How transfer in consideration of debt or subject to future payment to be charged
23. Valuation in case of annuityWhere an instrument is executed to secure the payment of an annuity or other sum payable periodically, or where the consideration for a conveyance is an annuity or other sum payable periodically, the amount secured by the instrument or the consideration for the conveyance, as the case may be, shall, for the purposes of this Act, be considered to be—
24. Facts affecting duty to be set forth in instrument
25. Direction as to duty in case of certain conveyances
26. Reconstruction or amalgamation of companies
27. Transfers between associated companies
28. Transfers during the life time of the person transferring
Part III – Determination as to stamps
29. Determination as to proper stamp
30. Certificate by Uganda Revenue Authority
Part IV – Instruments not duly stamped
31. Examination and impounding of instruments
32. Instruments not duly stamped inadmissible in evidence
33. Where admission of instrument not to be questionedWhere an instrument has been admitted in evidence, the admission shall not, except as otherwise provided in this Act, be called in question at any stage of the same suit or proceeding on the ground that the instrument has not been duly stamped.
34. Instruments impounded, how dealt with
35. Commissioner’s power to stamp instruments impounded
36. Instruments unduly stamped by accidentWhere an instrument chargeable with duty is not duly stamped, or a bill of exchange or promissory note, is produced by a person of his or her own motion before the Commissioner within one year from the date of its execution or first execution, and that person brings to the notice of the Commissioner the fact that the instrument is not duly stamped and offers to pay to the Commissioner the amount of the proper duty, or the amount required to make up that duty, and the Commissioner is satisfied that the omission duly to stamp the instrument has been occasioned by accident, mistake or urgent necessity, he or she may waive the penalty due.
37. Endorsement of instruments on which duty has been paid
38. Prosecution for offence under this Act
39. Persons paying duty or penalty may recover it in certain cases
40. Power of Commissioner to refund penalty or excess duty in certain cases
41. Non liability for loss of instruments
Part V – Allowances for spoiled stamps in certain cases
42. Allowance for spoiled stampsThe Commissioner may, on application in the prescribed form make allowance for stamps spoiled in the following cases—
43. Allowance in case of printed forms no longer required by corporationsThe Commissioner may make allowance for stamped papers used for printed forms of instruments by a banker or by an incorporated company or other body corporate, if for any sufficient reason the forms have ceased to be required by the banker, company or body corporate, if the Commissioner is satisfied that the duty in respect of the stamped papers has been duly paid.
44. Allowance for misused stampsWhere—
45. Allowance for spoiled or misused stamps, how to be madeWhere allowance is made for spoiled or misused stamps, the Commissioner may give in place of the spoiled or misused stamp other stamps of the same description and value or if Commissioner thinks fit, stamps of any other description to the same amount in value or at his or her discretion, the same value in money.
46. Allowance on renewal of certain debentures
Part VI – Objections and appeals
47. Objection to decision
48. Appeal to the tribunal
49. Appeal to the High Court
50. Appeal to the Court of AppealA party to a proceeding before the High Court who is dissatisfied with the decision of the High Court may, with leave of the Court of Appeal, appeal against the decision to the Court of Appeal.
51. Burden of proofThe burden of proof in a review of an objection decision is on the person liable to pay duty, on the balance of probabilities as to the extent to which the objection decision made by the Commissioner is excessive or erroneous, whichever is the case in dispute.
52. Duty as a debt due to the Government
53. Recovery of duty from other persons
54. Collection of duty by distraint
55. Duties of receivers
56. Security on property for unpaid duty
Part VII – Criminal offences and procedure
57. Penalty for executing instrument not duly stamped
58. Penalty for failure to cancel adhesive stampA person required to cancel an adhesive stamp who fails to cancel the stamp in the manner prescribed commits an offence and is liable to a fine not exceeding one hundred currency points or imprisonment not exceeding six months or both.
59. Penalty for not making out policy, or making one not duly stamped
60. Penalty for not drawing full number of bills or marine policies purporting to be in setsA person who draws or executes a policy of marine insurance purporting to be drawn or executed in a set of two or more, and not at the same time drawing or executing on paper duly stamped the whole number of policies of which that policy purports the set to consist, commits an offence and is liable to a fine not exceeding one hundred currency points or imprisonment not exceeding six months or both.
61. Penalty for postdating bills, and for other devices to defraud the Government of revenueA person who with intent to defraud the Government of duty, draws, makes or issues a bill of exchange or promissory note, bearing a date subsequent to that on which the bill or note is actually drawn or made and knowing that the bill or note has been so postdated, endorses, transfers, presents for acceptance or payment, or accepts, pays or receives payment of, the bill or note, or in any manner negotiates it or with the like intent, practices or is concerned in any act, contrivance or device not specially provided for by this Act or any other law, commits an offence and is liable to a fine not exceeding one hundred currency points or imprisonment not exceeding six months or both.
62. Offences in relation to stampsA person—
Part VIII – Miscellaneous
63. Books to be open to inspectionA person who has in his or her custody any registers, books, records, papers, documents or proceedings, the inspection of which may tend to secure any duty or to prove or lead to the discovery of any fraud or omission in relation to any duty, shall at all reasonable times permit a person authorised in writing by the Commissioner to inspect for such purpose the registers, books, papers, documents and proceedings, and to take such notes and extracts as he or she may deem necessary, without fee or charge.
64. Power of Minister to amend Schedules
66. Repeal and savings
History of this document
01 July 2022 amendment not yet applied
Amended by Stamp Duty (Amendment) Act, 2022
01 July 2020 amendment not yet applied
Amended by Stamp Duty (Amendment) Act, 2020
01 July 2019 this version
Amended by Stamp Duty (Amendment) Act, 2019
19 October 2014
01 July 2014