Do tax incentives influence start-up investments?

A vendor displays products during an expo at Motiv in Bugolobi. PHOTO/Racheal Nabisubi

What you need to know:

Investors in venture capital funds maybe patient but they are still profit seeking capitalists not philanthropists, Irene Eyogyiire writes.

The 2021 amendments to the Income Tax Act are aimed at stimulating growth boosting both local and foreign investment. A key amendment to the Income Tax Act provides for exemption of gains made from sale of investment interests by venture capitalists into start-ups. Start-ups are those which are pre-revenue with or without a tested prototype or business model but with a promise of future profitability or growth.

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