July 14

Uganda to Impose 5% Tax on Non-Resident Digital Companies

By Johnstone Kpilaakaa

On Tuesday, the Ugandan Parliament amended its Income Tax Act to include tax from non-resident digital service providers like Meta, Google, Amazon and other big tech companies operating in the country.

“We are not looking at the digital services; we are looking at the income derived by the provider of these services. For Uber, the money goes to California; the man derives income, but pays no taxes. Now we are saying, can we have a mechanism of having the taxes?” Henry Musasizi, Ugandan minister for state of finance was quoted as defending the inclusion.

Photo courtesy of Vu Hoang.

Source: Benjamin Dada (link opens in a new window)