Uganda: Tax proposals in 2025/2026 budget
Proposal to replace 5% digital services tax (DST) on nonresident digital services providers with 15% withholding tax
The 2025 / 2026 budget includes proposed tax amendments relating to income tax, value added tax (VAT), excise and stamp duties, tax procedures, and customs.
In particular, the budget would repeal the 5% digital services tax (DST) on nonresidents deriving income from providing digital services in Uganda and replace it with a 15% withholding tax on such income.
The proposed amendments would become effective July 1, 2025, if the president assents to them in their current form.
Read a June 2025 report prepared by the KPMG member firm in Uganda