Overview:
Double taxation agreements establish clear rules on which country has the right to tax specific types of income, providing certainty for investors who might otherwise navigate the complexities of overlapping tax laws.
The Director of Economic Affairs, Moses Kaggwa, is leading the Ugandan delegation in the second round of negotiations with the Ministry for the Economy, Finance, Industrial and Digital Sovereignty of the French Republic on a proposed Double Taxation Agreement (DTA) between Uganda and France.
Double taxation agreements establish clear rules on which country has the right to tax specific types of income, providing certainty for investors who might otherwise navigate the complexities of overlapping tax laws. By defining where and how much tax is payable, DTAs enable investors to plan their finances more efficiently and confidently.
In addition to clarifying tax obligations, DTAs facilitate the sharing of information between countries on income declared by investors, helping to deter tax evasion. They also strengthen the ability of tax authorities to collect taxes from residents who might have avoided paying in the other country.
Uganda already has DTAs with several countries, including Denmark, India, Italy, Mauritius, the Netherlands, the United Kingdom, and South Africa, demonstrating the country’s commitment to fostering a favorable and predictable environment for international investment.
The ongoing negotiations with France are expected to further enhance bilateral trade and investment relations, while promoting transparency and compliance in cross-border taxation.