Breaking News: Sanlam Investments Granted Tax Exempt Status, Eliminating WHT on Income
July 12, 2024
Friends,
In a landmark decision following extensive negotiations with the Uganda Revenue Authority (URA), Sanlam Investments, one of Uganda's premier CIS fund managers that operates the Sanlam Income Fund, has secured Tax Exempt status.
Effective from July 1, 2024, investors with Sanlam Income Fund will no longer be subject to Withholding Tax (WHT) on their Interest income, while continuing to benefit from exceptional returns.
This significant development coincides with Sanlam Investments' recent strides in the Collective Investment Schemes (CIS) fund management sector, where it has emerged as the third-largest Fund Manager in the country As of May 2024, the company boasts Assets Under Management (AUM) totaling UGX 248 billion.
The timing of this development couldn’t be any better as the collective investment assets in total are on the cusp of reaching a milestone UGX 3 trillion mark, anticipated to be reached by the end of July 2024.
With this tax exemption and its remarkable annualized return of 13% in May 2024, Sanlam Investments is now poised to challenge for the second spot in the fund management rankings and its investors have all the reason to smile going forward.
Given the robust growth of their total assets, industry observers are speculating whether Sanlam Investments will soon overtake ICEA to become the second-largest Fund Manager in the country in the not so distant future.
This will boost persons to invest in unit trusts, one of the key reasons that has been stopping people in some informal conversations i have had with prospective interested persons has been this multiple taxation and levies, including multiple levies on income i.e. if a person invests in unit trusts they are taxed on income which they already paid for when they earned it...its been just crazy and thuggery madness...hopefully it stands the test of time our children and descendants might make sense out of it i.e. save for their higher education and also future businesses. Doc
Good news… I believe the 15% WHT on Standard Chartered’s Shilling Fund will be dropped as well, because it’s in partner ship with Salam