“While multinational corporations (MNCs) make up only 1.9% of firms operating in Uganda, they are overrepresented among tax holiday beneficiaries. New estimates reveal that Uganda’s revenue losses due to these tax expenditures peaked at USD 42 million in 2020.”
A recent UNU-Wider Research Brief sheds some light on the cost-effectiveness of corporate income tax incentives in Uganda. The analysis identifies the characteristics of firms benefiting from various incentives: industry sector, size, multinational versus domestic company status, profitability, and employment.