ICPAU Raises Concerns Over UGX 100,000 Stamp Duty on Professional Practising Certificates

The Institute of Certified Public Accountants of Uganda (ICPAU) has continued to raise concerns regarding the UGX 100,000 stamp duty imposed on professional practising certificates and licences under the Stamp Duty (Amendment) Act, 2020.

According to ICPAU, the levy creates an additional financial burden on professionals who are already subject to multiple tax obligations, including annual licence fees, income tax, and local service tax.

Concerns Over Double Taxation

ICPAU argues that the stamp duty effectively results in double taxation because professionals are required to pay several existing statutory fees and taxes before an additional levy is imposed on practising certificates.

The accounting body maintains that the additional cost creates multiple tax points for professionals and increases the overall cost of maintaining professional compliance.

Impact on Professional Compliance

Professional bodies have also expressed concerns that higher compliance costs may discourage timely renewal of practising licences and negatively affect professional compliance levels within regulated sectors.

ICPAU has emphasized that reducing unnecessary compliance costs could help strengthen professionalism, improve regulatory compliance, and encourage broader participation within the formal professional sector.

Ease of Doing Business Concerns

The institute further argues that reducing administrative and tax-related costs for professionals would contribute positively to Uganda’s ease of doing business environment.

Similar concerns have also been raised by other professional bodies, including the Uganda Law Society, particularly regarding the impact of the levy on private practitioners.

Government Position

Government officials have previously defended the levy, arguing that it supports efforts to widen the tax base, improve compliance monitoring, and strengthen revenue collection.

Despite this position, ICPAU has continued to lobby for the removal of the stamp duty through ongoing tax amendment discussions and stakeholder engagement initiatives.

Business & Professional Implications

The continued debate highlights broader concerns surrounding tax policy, regulatory compliance, and the balance between revenue mobilization and supporting professional practice in Uganda.

Organizations and professionals should continue monitoring developments relating to professional licence taxation and future tax amendment proposals that may impact compliance obligations and operational costs.

“Balanced tax policy remains essential for promoting compliance, professionalism, and sustainable economic growth.”