The Ugandan Parliament passed a law introducing a 5% tax on the total income from digital services received by providers who are not residents of Uganda. This tax will be in effect starting from the 1st of July, 2023.
The Ugandan Revenue Authority is responsible for implementing this tax, which is aimed at income generated by non-resident digital service providers from local consumers.
The new tax is part of the 2023 Income Tax (Amendment) Bill and applies to various digital services, including:
| Digital Services |
|---|
| Online advertising services |
| Data services |
| Services delivered through online marketplaces or intermediation platforms (such as accommodation, vehicle hire, and other transport online marketplaces) |
| Digital content services (including accessing and downloading digital content) |
| Online gaming services |
| Cloud computing services |
| Data warehousing |
| Services delivered through social media platforms or internet search engines |
| Any other digital services as prescribed by the Minister through statutory instruments |
It’s worth noting that Kenya is considering withdrawing its Digital Services Tax (DST) as part of the OECD global tax renegotiation effort, which aims to harmonize taxation of foreign digital revenues.
If you need assistance calculating DST or VAT for Uganda or any other country, you can utilize VATCalc’s VAT Calculator, which can be seamlessly integrated into ERP systems, marketplaces, and billing processes. Feel free to contact VATCalc to learn more about their services.
