Uganda to impose tax on Facebook, Twitter and Netflix

The Parliament of Uganda has passed a proposed new law that imposes a 5 percent tax on the income earned in the country by foreign digital companies such as Facebook and Twitter.

Other companies affected by the new tax contained in Income Tax Amendment Bill, 2023 include Google, Amazon, and Uber, and any foreign-owned company offering services such as data, online gaming, accessing and downloading of digital content, and data warehousing. 

“The Income Tax (Amendment) Bill, 2023 will tax non-resident providers of digital services in Uganda such as Facebook, Twitter, Amazon, Netflix, etc,” Parliament said in a brief statement on Twitter Tuesday evening.

Some legislators, however, criticised the Bill, saying it might lead to an increase in the prices of internet services and gag social media users. The finance committee of Parliament insisted that the Bill “is not a social media tax and will not affect an ordinary Ugandan in any way,” according to the statement.

By The East African

https://www.theeastafrican.co.ke/tea/business/uganda-passes-law-imposing-tax-on-facebook-twitter-and-netflix-4302406