- Uganda did not abolish the Digital Services Tax (DST); the 2025 amendment only removed DST for related-party (intra-group) transactions, which are now subject to a 15% withholding tax.
- DST at 5% still applies to third-party digital service providers supplying to Ugandan consumers.
- Widespread confusion persists, with some customers incorrectly applying withholding tax to non-related-party transactions, causing double taxation.
- The misunderstanding is fueled by oversimplified summaries and AI-generated content that misrepresent the amendment as a full DST replacement.
- The compliance framework’s structure, showing both DST and withholding tax together, also contributes to the confusion.
Source: globalvatcompliance.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.
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