Uganda imposes new tech tax on foreign firms

Uganda has passed a new tax law that imposes a 5% levy on income earned locally by foreign tech companies such as Netflix, Twitter, Facebook, Google, Amazon, and Uber.

The tax law had previously been debated and dropped in May. However, Uganda President Yoweri Museveni wrote to Parliament saying the decision was misguided before signing a bill with the levy clause.

As a result, foreign-owned tech companies offering services in Uganda will pay 5% of their income to the government.

"The income tax (Amendment) bill, 2023 will tax non-resident providers of digital services in Uganda such as Facebook, Twitter, Amazon, and Netflix," Ugandan parliament said in a statement published on Twitter Tuesday evening.