Uganda to impose 5% tax on non-resident digital companies 🇺🇬
The Ugandan Parliament has passed an amendment to its Income Tax Act, requiring non-resident digital service providers like Meta, Google, and Amazon to pay taxes in the country. The move comes after Ugandan President Yoweri Museveni requested the inclusion of tax on non-resident digital companies. Last month, President Museveni declined to assent to the act until the tax provision was added. The tax, which is expected to be signed into law by President Museveni in the coming weeks, aims to ensure that income derived by these tech companies is subject to taxation in Uganda. Uganda joins other African countries such as Nigeria and Kenya in imposing taxes on non-resident digital service providers to boost revenues and regulate the digital economy. The implementation of similar taxes in Nigeria has led to concerns about increased costs for businesses and potential issues with multiple taxations.
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