Most  taxes in Uganda  are either  direct taxes.

(A)   Direct  taxes: Direct taxes are  those which  are levied on people's incomes, profits and on transfer of capital. They are direct because the impact and incidence  of a tax will be on the same person or company. The types  of Direct Taxes are:

Income tax: This is a tax  levied  on people who earn  income either  on monthly basis or at any given time of the fiscal year. It is only leviewed on peoples taxable income.

Taxable income is an individual's net income which is available  for taxation  after  deductions  have been  made with respect to allowances  such as marriage and children allowance.

Corporation tax: This is a tax levied on the profits  of companies  and  other  business organisations.

Capital  gains tax: This is a tax levied  on an increase in value of an asset between  the time  of purchase and the time of sale. Therefore it is that tax chargeable  on any capital  gain  occurring on the disposal of any capital asset.

Wealth tax: This is imposed on an individual's stock  of wealth  or property  which include capital and accumulated savings.

Estate or death duty (tax): This is levied on an  individual  who  inherits property and it is charged according to the value of the property  inherited.

Inheritance tax: This is levied on an individual  who inherits property and it is charged according to the value of the property from one person to another.

Gift tax: This is a tax levied on the transfer  of wealth from one person to another.