• Latest
  • Trending
  • All
  • News
  • Business
  • Politics
  • Lifestyle
To tax or not to tax online businesses

To tax or not to tax online businesses

November 21, 2019
Teso opposition, NRM MPs speak same language on Parish Development Model

Teso opposition, NRM MPs speak same language on Parish Development Model

July 4, 2022
Speaker Among: “Don’t vote for politicians who oppose government projects”

Speaker Among: “Don’t vote for politicians who oppose government projects”

July 4, 2022
Final Investment Decision: The risks, opportunities for Ugandans

 EACOP set for construction phase

July 4, 2022
KCCA to establish community centres at parish level

KCCA to establish community centres at parish level

July 4, 2022
Student drowns in Lake Bunyonyi

Is East Africa ready for a world where water will become commodity like oil?

July 4, 2022
Shs 2.7 trillion earmarked for debt interest payment

Opinion: Our budget priorities have increased but growth is still slow

July 4, 2022
Mukono’s Nile High School proprietor dies in Masaka road crash

Mukono’s Nile High School proprietor dies in Masaka road crash

July 3, 2022
This year’s Kabaka Birthday Run attracts over 80,000 participants

This year’s Kabaka Birthday Run attracts over 80,000 participants

July 3, 2022
Mayiga salutes KCCA for redeveloping Lubiri Ring Road

Mayiga salutes KCCA for redeveloping Lubiri Ring Road

July 3, 2022
UPDF peace keepers in Somalia acquire skills on child protection

UPDF peace keepers in Somalia acquire skills on child protection

July 3, 2022
Logo
  • News
    • Business
    • 2021 Elections Watch
      • The Election Podcast
    • Exclusive
    • Investigations
  • Politics
  • Education
  • Security
    • Cyber Security
  • Health
    • Coronavirus outbreak
  • Opinions
    • Columns
      • Parting Shot
      • Two Sides of a Coin
      • Bazanye’s Quick Shots
      • Mable Twegumye Zake’s #BitsOfMe&You
      • But this Year!
      • What Did I Miss?
  • Lifestyle
    • Hatmahz Kitchen
    • Food Hub
    • Let’s Talk About Sex
    • Entertainment
    • Tour & Travel
    • Love Therapist
    • Homes
  • Global
    • Africa
    • Asia
    • Middle East
    • Europe
    • The Americas
  • East Africa
    • Kenya
    • Rwanda
    • Tanzania
    • South Sudan
    • DR Congo
    • Ethiopia
    • Sudan
  • Technology
  • Special Reports
    • Kabaka Mutebi’s 25th Coronation Series
    • Focus on Somalia
    • Sino-Africa
    • Uganda at 56
    • Anti-Corruption Fight
    • Age Limit Map
    • Tuve Ku Kaveera
  • Sports
    • Place-It
    • StarTimes Uganda Premier League
    • Bundesliga
    • World Cup
  • Jobs
No Result
View All Result
Logo
No Result
View All Result
Home Opinions

To tax or not to tax online businesses

Many businesses are now operating online. Before long, the individuals who should be accountable for the revenue will not be traceable

Ian Rumanyika by Ian Rumanyika
November 21, 2019
in Opinions
Reading Time: 2 mins read
0
To tax or not to tax online businesses

By Ian Rumanyika

Taxation as a tool of good governance allows economies to grow while helping to improve society as a whole. This week during the 4th International Conference on Tax in Africa (ICTA), happening in Kampala-Uganda, 47 African revenue authorities discuss Innovation – Digitalisation and Harnessing Technology to Improve Tax Systems.

ADVERTISEMENT

You will agree with me, that online businesses and globalisation are growing challenges to traditional tax regimes. Traditionally, goods are usually physical; their production, distribution and consumption is easily taxable. Why? Physical goods are produced at a manufacturing plant, shipped off to wholesalers and boxed on retailers’ shelves, the final consumer walks away with a paid for (and taxed) product. With this, tax collection is in the hands of the wholesalers or retailers. These charge the consumer Value Added Tax (VAT) and then remit this to the government, thus acting as tax agents.

AD-03 AD-03 AD-03
ADVERTISEMENT

Recently, the changing trends are causing a rumble and a shift from the norm; many businesses are now operating online. Before long, the individuals who should be accountable for the revenue will not be traceable. Most local businesses in Uganda and other African markets advertise their products and services on social media platforms. As a result, government loses a lot of revenue by not taxing local and most significantly international online businesses like Ebay, Facebook, Google Ads, Amazon, Jumia, Olyx, Uber, Be-forward and online car websites among others.

The Internet has and will continue to annihilate borders between countries making businesses virtually invisible and hard to track. A tax solution is therefore inevitable!

ADVERTISEMENT

Without a doubt, any taxation solution adopted should be efficient, fair, simple, and must have a neutral effect. This is what African revenue authorities are discussing and putting forward during this 4th ICTA conference, hosted by Uganda Revenue Authority.

It is generally accepted that tax rules for sale of intangible products and services should be the same, as those of other goods. The means of delivery should not govern tax treatment. This begs the question, how do we make it fair for everyone, dealing online and offline?

The taxation of e-commerce or online businesses is further made difficult because first, it has an international nature. It is inherently non-territorial. The lack of geographic boundaries has helped increase the amount of e-commerce activity; small sized companies can become international players by using e-commerce without any physical location. With this, comes the issue of tax jurisdiction. We must think of new policies that put all these into consideration.

Taxation is dependent upon, or rather, is interrelated with the issue of residency. For a tax to be imposed on a transaction, the authority that has the role of collecting the taxes has to know where it took place and also to recognize the category in question, goods or services; if not clarified then there may be cases of double-taxation or even multiple taxation.

As revenue authorities, we are awake to these challenges. We are on a quest for answers to these questions. How do we use technology to trace the inevitable taxable digital economy and bring it into the tax bracket so that we, create an equal and fair taxation system for all?

[email protected]

Ian Rumanyika is the Public and Corporate Affairs Manager, Uganda Revenue Authority 

 

Tags: pay your taxestaxtaxationtaxes
ShareTweetSend
Previous Post

John Blaq, Vinka to perform at Wizkid show

Next Post

Britain’s Prince Andrew steps back from royal duties after scandal

Ian Rumanyika

Ian Rumanyika

Related Posts

Student drowns in Lake Bunyonyi

Is East Africa ready for a world where water will become commodity like oil?

by NP admin
July 4, 2022
0

By Samuel Obedgiu  In December, 2020, the CME group, a stock exchange in USA, launched futures contracts related to California’s...

Shs 2.7 trillion earmarked for debt interest payment

Opinion: Our budget priorities have increased but growth is still slow

by NP admin
July 4, 2022
0

Uganda’s budgetary requirements continues to increase year on year, rising from Shs 32.7 trillion in FY 2018/19 to Shs 48.1...

Opinion: Is Museveni right on science?

Opinion: Is Museveni right on science?

by NP admin
June 28, 2022
0

By Frank Asiimwe The recent statement by President Museveni to boost salaries for Science teachers, has raised a lot of...

Exploring the environmental viability of EACOP

The pretence that surrounds EACOP Promoters

by Brian Atuheire Batenda
June 27, 2022
0

The media in Uganda both print and social media has been awash with opinions and articles alleging that there is...

Next Post
Britain's monarchy reels from biggest crisis since 1990s

Britain's Prince Andrew steps back from royal duties after scandal

  • Trending
  • Comments
  • Latest
“My life is in danger” journalist who broke the story on Speaker’s Shs 2.8 bn cars cries out

“My life is in danger” journalist who broke the story on Speaker’s Shs 2.8 bn cars cries out

June 28, 2022
AKO Caine Prize: Meron Hadero named first Ethiopian winner

Senior four leaver dies during Busoga UPDF recruitment exercise

July 3, 2022

Pastor who divorced wife for denying him conjugal rights for 10 years advises women to deny men sex if they are not developing

June 28, 2022
Teso opposition, NRM MPs speak same language on Parish Development Model

Teso opposition, NRM MPs speak same language on Parish Development Model

July 4, 2022
Speaker Among: “Don’t vote for politicians who oppose government projects”

Speaker Among: “Don’t vote for politicians who oppose government projects”

July 4, 2022
Final Investment Decision: The risks, opportunities for Ugandans

 EACOP set for construction phase

July 4, 2022
  • About
  • Advertise
  • Privacy & Policy
  • Careers
Call us: +256-417-720-101
Email: [email protected]

© 2020 Nile Post Uganda Ltd. - A Next Media Services Company.

No Result
View All Result
  • News
    • Business
    • 2021 Elections Watch
      • The Election Podcast
    • Exclusive
    • Investigations
  • Politics
  • Education
  • Security
    • Cyber Security
  • Health
    • Coronavirus outbreak
  • Opinions
    • Columns
      • Parting Shot
      • Two Sides of a Coin
      • Bazanye’s Quick Shots
      • Mable Twegumye Zake’s #BitsOfMe&You
      • But this Year!
      • What Did I Miss?
  • Lifestyle
    • Hatmahz Kitchen
    • Food Hub
    • Let’s Talk About Sex
    • Entertainment
    • Tour & Travel
    • Love Therapist
    • Homes
  • Global
    • Africa
    • Asia
    • Middle East
    • Europe
    • The Americas
  • East Africa
    • Kenya
    • Rwanda
    • Tanzania
    • South Sudan
    • DR Congo
    • Ethiopia
    • Sudan
  • Technology
  • Special Reports
    • Kabaka Mutebi’s 25th Coronation Series
    • Focus on Somalia
    • Sino-Africa
    • Uganda at 56
    • Anti-Corruption Fight
    • Age Limit Map
    • Tuve Ku Kaveera
  • Sports
    • Place-It
    • StarTimes Uganda Premier League
    • Bundesliga
    • World Cup
  • Jobs

© 2020 Nile Post Uganda Ltd. - A Next Media Services Company.