Ugandan Revenue Authority passes DST turnover tax on income from digital services generated by non-residents
Uganda’s Parliament passed the introduction of a 5% levy on the gross digital services income received by non-resident providers from local consumers. This is in effect from 1 July 2023.
This is in addition to Uganda 18% VAT on digital services.
Kenya DST is likely to be withdrawn soon as part of the OECD global tax renegotiate to harmonise the rights to tax foreign digital revenues.
The measure is contained within the 2023 Income Tax (Amendment) Bill, and lists the following services as subject DST:
- Online advertising services;
- Data services;
- Services delivered through an online marketplace or intermediation platform, including an accommodation online marketplace, a vehicle hire online marketplace, and any other transport online marketplace;
- Digital content services, including accessing and downloading of digital content;
- Online gaming services;
- Cloud computing services;
- Data warehousing;
- Services, other than the above, delivered through a social media platform or an internet search engine; and
- Any other digital services as the Minister may prescribe by statutory instrument.
VATCalc’s VAT Calculator can live determine DST’s or VAT for Uganda or any country around the world, and be fully implemented into ERP’s marketplaces and similar billing processes. Contact us to learn more.
Africa & Middle East Digital Services Taxes (DST)
| Country | Status | Rate | Annual sales threshold | Scope | |
| In-country income | Global income | ||||
| Israel | Proposed | 3%-5% | Digital interface; advertising; user data | ||
| Kenya | Jan 2021 | 1.5% | n/a | nil | Digital interfaces services, including most non-resident e-services |
| Nigeria | Jan 2022 | 6% | NGN 25m | Content; customer data; goods & services; and intermediary services | |
| Sierra Leone | Jan 2021 | 1.5% | Ad, web and data services | ||
| South Africa | Proposed | ||||
| Tanzania | Jan 2022 | 2% | Digital or electronic services | ||
| Tunisia | Jan 2020 | 3% | Apps; digital services (non-resident only) | ||
| Uganda | Jul 2023 | 5% | |||
| Zimbabwe | Jan 2020 | 5% | Digital and ecommerce | ||
