Uganda’s Income Tax Act (1997, as amended) establishes a category of exempt organizations which includes those that are of a religious, charitable, educational, or public character. Qualifying organizations are exempt from tax on almost all categories of income with the exception of rental income or income in respect of immovable property.

Individuals and legal entities are eligible for tax deductions for charitable contributions. Ugandan law subjects certain sales of goods and services to VAT, with a fairly broad range of exempt activities. Foreign grants are exempt from VAT.