LEGAL ALERT

THE FINANCE BILL, 2019 – PROPOSED CHANGES ON CAPITAL GAINS TAX

WE wish to update you on two changes proposed through the Finance Bill, 2019, relating to the above.

  1. The Bill proposes to increase the rate of Capital Gains Tax (CGT) from 5% to 12.5%.
  2. It is proposed that when calculating the capital gains tax payable, no gain shall be included in the computation of income in the case of a transfer of property that is necessitated by a transaction involving restructuring of a corporate entity. This change will apply in transfers in transfers made (a) in order to comply with a regulatory requirement or directive (b) in the course of compulsory acquisition by the government (c) as a result of an internal restructuring within a group which does not involve transfer of property to a third party and (d) in the public interest.

The above changes shall come into force on October 1, 2019 if passed into law.

By: Enock Mulongo

 

Leave a comment

name*

email* (not published)

website