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BY Rachel Musoke AND Patience Mpora Birungi
Uganda: Nil stamp duty proposed on agreements, mortgage deeds and mortgages of a crop from 1 July 2025
The Stamp Duty Act (Cap. 339) is set to be amended by the Stamp Duty (Amendment) Bill, 2025. The Bill proposes that, with effect from 1 July 2025, no stamp duty will be payable on agreements or memoranda of agreement, mortgage deeds (including any related collateral, auxiliary, additional or substituted security), and mortgages of a crop.
This means that businesses and individuals will no longer incur stamp duty when entering into contracts or when securing loans using land or crops. This most welcome change is expected to promote investment and debt transactions, with the aim of boosting the economy. In a market where mortgages over land and real estate are still the most prevalent security taken by lenders, doing away with the current 0.5% stamp duty requirement on mortgage deeds will significantly reduce the cost of borrowing.
This proposal builds on the 2020 amendment to the Stamp Duty Act, which removed stamp duty on specific security instruments being debentures, further charges over mortgaged property and equitable mortgages. By extending the relief to primary mortgage deeds and standard agreements, the proposed 2025 amendment reflects a continued effort to support access to credit and lower the cost of doing business in Uganda. In our previous article (July 2020), we questioned the rationale of maintaining the stamp duty on primary mortgage deeds while removing it for debentures and further charges. It is good to see this concern now being addressed by the Bill.
If passed, this change will apply only to instruments executed on or after 1 July 2025. Any document signed before that date will remain subject to the current stamp duty regime.
Rachel Musoke
Executive | Head | Uganda
Patience Mpora Birungi
Legal Assistant | Uganda
