- Uganda announced amendments to tax rules for 2025, including changes to VAT and digital tax rules.
- The 5% Digital Services Tax (DST) introduced in 2023 is repealed, replaced by a 15% withholding tax on income from digital services by non-residents.
- Amendments to the Income Tax Law exempt non-resident entities providing digital services to associates in Uganda from DST, but a 15% withholding tax may apply.
- VAT Law amendments exempt United Nations-related agencies and the International Atomic Energy Agency from VAT, redefine exempt supplies, and add aircraft supply to zero-rated supplies.
- Excise duty amendments allow remission for damaged, expired, or obsolete goods, reducing future liabilities or offsetting existing obligations.
- Changes may benefit sectors like renewable energy and manufacturing, but non-resident businesses may face increased tax burdens from new DST and withholding tax rules.
Source: vatabout.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
