Uganda: Tax proposals in 2025/2026 budget

Proposal to replace 5% digital services tax (DST) on nonresident digital services providers with 15% withholding tax

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June 16, 2025

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

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