Stamp Duty (Amendment) Act, 2026
WHAT HAS CHANGED

AT A GLANCE
Document retention now required by law 5 YEARS

Interest penalty for late monthly returns for persons dealing in financial services 2% / MONTH

Introduced fixed rates for motorcycle & motor vehicle transfers UGX 30K–200K

1.5%
Land transfer duty stays put, the proposed rise to 3% didn’t pass Bottom line: the 2026 amendments bring
new obligations and greater certainty. Financial service providers face the most immediate impact; vehicle dealers gain clearer fixed rates; land transactions remain unchanged.

WHAT SHOULD BUSINESSES
DO?
• Check filing obligations & regularise outstanding returns
• Update vehicle-transfer processes for the new fixed rates
• Continue applying 1.5% to land transfers
• Review record-keeping for the 5-year rule

The Stamp Duty (Amendment) Act, 2026 came into force on 1st July 2026. It brings new compliance obligations, fixes rates for vehicle transfers, and clarifies record-keeping requirements, however, the proposed change to the land duty transfers did not make it into the final law.

WHAT HAS CHANGED
1. Five-year document retention
Taxpayers are now required to retain stamp duty documents for five years undersection 62(2).
Therefore, it is important that you update your document-retention policies and systems to reflect this amendment. This is consistent with the exisiting provisions on document retention in Tax Proceedure Code Act.

2. Monthly returns for financial services
Under section 7A, banks, money lenders, and persons dealing in loans, credit, securities or investment funds are required to file monthly stamp duty returns from 1st July 2026. We advise you to ensure that July and August returns are filed given that late filing attracts 2% interest per month.

3. Fixed rates for vehicle transfers
Duty on transfers is now fixed at UGX 30,000 for motorcycles, tricycles and quadricycles, and UGX 200,000 for other motor vehicles. This new amendment indicates that there will be an increase in pricing and compliance checklists need to be updated accordingly.

WHAT HAS NOT CHANGED
Land transfers remain at 1.5%
The proposed amendment sought to rise the land transfer duty to 3%. However, the Committee on Finance, Planning and Economic Development observed that the increament to 3% would be a rise of 100%,the committee further proposed that the increament should be gradual. The amendment was dropped. The rate remains at 1.5%.

Contact us to discuss your matters

Plot 14 Archer Road Kololo

P.O. box 21086, Kampala, Uganda

+256 414 348 669

info@taxconsultants.co.ug

https://taxconsultants.co.ug