Don’t panic – the Muzungu has no plans to leave Uganda! – but the reality of expat life is that many people move on after a few years’ living in the Pearl of Africa.
In this week’s guest post, Flavia and Mark share some insights with Diary of a Muzungu readers:
Have you ever wondered what it would be like to leave Uganda permanently, after having lived in the country for a long, or maybe, a short time?
Or are you planning ahead of your uproot from your home country to Uganda? If so, this read was curated for you too. In a few paragraphs – and presumably delicate scrolls – you will get up to speed with the legal and financial aspects involved in leaving Uganda permanently.
In a similar situation as yours, many expats leave Uganda to look for a new adventure, employment in a foreign country, or to simply return to their country of origin. However, many people wonder “What does it take to start the process of leaving the country indefinitely?”
‘Do I just pack my bags and head for the airport? Or are there procedures to be followed?’
Permanently leaving Uganda, whether you’re an expat, employee, or businessperson, must be easy, wouldn’t you think? Here are some insights on a few things you may need to work through before packing up.
If you stick around long enough, you will learn a lot; how to deal with your departure process when it comes to work or business engagements, tax implications and even, how to handle your landlord or effectively dispose of property.
Planning on how to leave your current employer on good terms
All contracts of employment in Uganda are governed by the country’s Employment laws.
So, what exactly does this mean?
If you are an independent contractor, you will be required to complete any pending engagements to the satisfaction of your clients before leaving the country.
However if you are engaged under an employment contract, you will be required to formally end your employment before your departure. This can be triggered through resignation with prior notice. There are no fast and hard rules about resigning but it’s important to do it professionally and graciously. At this point, you might ask:
‘What happens to the money I have saved up with the National Social Security Fund(“NSSF”)?’
As a member of NSSF, your employer is required to remit 15% of your monthly income as savings. The 15% is a shared responsibility between you and your employer, where 5% is deducted from your monthly salary while your employer remits 10% of your gross monthly salary to NSSF. Once you decide to permanently leave Uganda, you are entitled to the payment of your remitted savings for at least four financial years. The claim for your savings is made online on the NSSF portal, or your nearest NSSF office. To support your claim, the following documents are necessary:
- Current passport size photo.
- Copy of your passport with a valid work permit.
- Proof of your bank details. The bank account must be held in the country you are heading to.
- Resignation letter, termination letter, or any document showing severance of the prior employment relationship in Uganda.
- Evidence of permanent residence status or citizenship in the Country you are moving to.
- Evidence of exit from Uganda e.g. exit stamp from Uganda and/or entry stamp to destination country.
- Notarized Passport and/or permanent residence card (if claiming online).
Expats running businesses
“Alright, but I run a business in Uganda, and before I leave I would like to dissolve my partnership, transfer stakes, or dissolve my company?” This shouldn’t be strenuous, right?
Getting out of a partnership
For starters, a partnership venture may not take so much time to dissolve since you may have a partnership deed that indicates the terms of dissolution. However, in case you have no such clause in the deed, the partnership can be dissolved by an agreement between you and your partner(s).
Leaving a company as a shareholder
Upon reaching the decision to leave Uganda permanently, and you desire to sell your shareholding, in order to have a smooth process you should consider doing the following;
- Engaging with other shareholders in order to reach a consensus on any outstanding obligations and also to set up a road map for your exit from the company.
- Conducting a financial audit.
- Valuing your shareholding to arrive at a fair market value at which you can sell your shares.
At this point, a common question comes to mind:
“What if I fail to find buyers for my shareholding?”
An alternative to selling your stake would be to dissolve the company altogether. However, we hate to say this but, the process of shareholders dissolving a company, is slightly longer than that of transferring shares or that of dissolving a partnership.
Engaging the Taxman
When you are no longer generating income in Uganda owing to your pending departure, you may consider applying to the Commissioner General of the Uganda Revenue Authority (URA) to deregister your Tax Identification Number (TIN).
Dealing with a Landlord
Just like any other relationship, landlord – tenant relationships are different for everyone. However, the relationship between the two is usually governed by the Tenancy Agreement. Termination of this contract, to some, may mean the beginning of exit obligations, for example, restoring the premises.
Disposal of assets
When most of the processes are over and you are drawing closer to the departure day, if you still possess property, you are at liberty to dispose of them before leaving Uganda.
Now let’s talk about safety for you and your loved ones
COVID-19
At the time of writing, it is mandatory to present a negative COVID-19 test taken within 72 hours of your departure from Uganda. Tests can be done from any accredited laboratory. Before you travel read Latest COVID-19 health measures at Entebbe International Airport, which is updated regularly.
Travelling with Pets
If you plan on travelling with your pet, or “fur buddy,” here is a roundup of what you may need to do to avoid inconveniences.
The first thing to do is contact the airline you are planning to fly with for full information.
Depending on the country you are travelling to, you may need a microchip for the pet, rabies vaccination, and a health certificate. Additional blood tests may also be required.
Finally you will need to register your pet with the airline, make payment and ensure that they are placed in a cage or kennel for the duration of the flight.
Lastly, the process of leaving Uganda can be quite unsettling especially if you are a business owner or have spent a considerable amount of time in the country.
However, with an exit process plan, coupled with professional advice, you can be able to seamlessly overcome the numerous obstacles that may lie ahead, and be packing within no time.
The guest writers are Kampala-based multi-disciplinary lawyers who specialise in relocation services for expats. In case of any questions or need for clarifications regarding this guest post, please reach the writers directly on the following contacts:
Flavia Asiimwe, LLB (Hons) University of Kent (UK)
Tel: +256 773360315 Email: fasiimwe@origolaw.ug
Mark Kizza, CTA (ICPAU), LLB (Hons) Makerere University
Tel: +256773091830 Email: mkizza@origolaw.ug
