EXPERTS UGANDA Uganda: Musasizi Defends Decision to Tax Twitter and Netflix 2 months ago Samuel Post Views: 68 The Minister of State for Finance (General Duties) Henry Musasizi, has defended the proposal to impose a 5% tax on the gross income earned by international digital companies in Uganda. Musasizi alongside other officials from the Ministry of Finance appeared before Parliament’s Finance Committee on Thursday, 13 April 2023, to defend the proposals in the seven tax bills intended to raise revenue to finance the 2023/2024 national budget. Henry Musasizi The tax bills being considered include; the Excise Duty (Amendment) Bill, 2023, the Traffic and Road Safety (Amendment) Bill 2023, the Tax Procedures Code (Amendment) Bill 2023, the Income Tax (Amendment) Bill 2023, the Automatic Exchange of Information Bill 2023, the Value Added Tax (Amendment) Bill 2023 and the Lotteries and Gaming Bill 2023. In the Income Tax (Amendment) Bill government seeks to impose a tax on non-residents providing digital services in the country. The proposal reads: ‘A tax is imposed on every non-resident person deriving income from providing digital services in Uganda to a customer in Uganda at the rate of 5%.’ The digital companies’ eligible of paying this tax include companies whose income is derived from providing a digital service in Uganda through the internet, electronic network or an online platform. Asked by Karim Masaba (Ind., Industrial Division) on how this tax will be implemented, Akello said this is a charging system that will require the digital companies to account for the income sourced in Uganda. “They introduced a tax on Netflix in Canada, but what happened was , the only way they could charge the tax was to charge on the payments made. Netflix continued to get what it gets and pushed the charge on the consumers,” – Masaba said. Hon. Basil Bataringaya (NRM, Kashari North) wondered if taxing the companies will not result into the companies charging Ugandans for the social media services and also increase the costs of adverts. Tracy Akello, the Rulings and Interpretations Business Policy Supervisor at Uganda Revenue Authority (URA), revealed that the tax will not have to be paid by Ugandans but by the non-resident digital companies. “We intend to tax the likes of Amazon, Netflix, Twitter, Facebook, as long as they are sourcing income from Uganda,” said Akello. URA Commissioner General, John Musinguzi, said that they have put up a provision for the international digital companies to file their returns online, and this will be done on quarterly basis. “We have already started collecting VAT, and now we are proposing to collect income tax,” Musinguzi said. Source: Parliament Uganda Media About Post Author Samuel I am a journalist specializing in gambling in Africa and around the world. I am particularly interested in stories about games and casinos. See author's posts SamuelI am a journalist specializing in gambling in Africa and around the world. I am particularly interested in stories about games and casinos. Facebook Twitter LinkedIn Email Print Tags: digital, Internet, taxes, Uganda Continue Reading Previous Why investing isn’t gamblingNext Nigeria’s Highest Earning Entertainment Industries More Stories EXPERTS WORLD NEWS iGG Day Two Recap: A Successful Summit Comes To A Close 12 hours ago Iwo Bulski EXPERTS UGANDA Esports Betting in Africa: Opportunities and Challenges 16 hours ago Samuel EXPERTS KENYA Kenya: New OCS To Combat Nakuru Gangs 2 days ago Szarlot EXPERTS HOT NEWS SOUTH AFRICA SA has made over R34 billion in Gross Gambling Revenue (GGR) 3 days ago Szarlot EXPERTS WORLD NEWS Capitalising on iGaming: The Rise of Affiliate Programmes 3 days ago Tools BILLIARD UGANDA BWANIKA MANSOOR and NAIGA LUKIA wins the E-PLAYAFRICA POOL CHAMPIONSHIP 2023 6 days ago Fahad Luyzburg EXPERTS KENYA Kenya Kwanza MPs To Defend Ruto’s Fiscal Reform Agenda 7 days ago Samuel EXPERTS GHANA Convenient Payment Methods for Ghanaian Online Casino Enthusiasts 7 days ago Szarlot EXPERTS SOUTH AFRICA Animal Welfare Organisations Celebrate Resumption of Lottery Funding 1 week ago Szarlot EXPERTS KENYA MOA opposed to 15pc excise duty on alcohol, gambling ads 1 week ago Szarlot EXPERTS WORLD NEWS How has the gaming industry changed in 2023? 1 week ago Iwo Bulski EXPERTS UGANDA Online gambling firms accused of exploiting lucrative African markets 2 weeks ago Samuel Leave a Reply Cancel replyYour email address will not be published. Required fields are marked *Comment * Name * Email * Website Save my name, email, and website in this browser for the next time I comment. Δ This site uses Akismet to reduce spam. Learn how your comment data is processed.