Uganda Mauritius Double Tax Agreement

SEATIN, Tax Justice Network and ActionAid have called for these agreements to be revised to make things fair for countries like Uganda. Now Stella Nyapendi, a lawyer with the Uganda Revenue Authority, says she started with Mauritius and the Netherlands. They will therefore move on to other agreements with other countries. This means that a company registered in Mauritius does not sell any stake in a business in Uganda if it is not in the transaction. Mauritius must be associated with it, according to the reflection contracts concluded at DBA Uganda. It is not known how much Uganda loses such agreements each year, but it is estimated that Africa loses between $50 billion and $60 billion a year because of these illegal flows. “But the revision must be informed of the benefits and costs of such a political reversal. The benefits should outweigh the costs,” he said. But in Mauricie, capital gains tax is zero. This essentially means that the company is not taxed at all. Many DBAs with Mauritius prohibit the taxation of capital gains when selling shares to the seller`s country of residence. According to the Kuwaiti government, Ambassador Walid Al-Khubaizi, Kuwait`s Deputy Minister for European Affairs, expressed interest on 27 October in amending the income tax agreement between Belgium and Kuwait. Paul Corti Lakuma, a tax expert and researcher at The Centre for Economic Policy Research at Makerere University (EPRC), said the revision of the ATDs was a good step and would indeed cover tax leaks.

For Uganda, for example, the DBA allows Dutch companies to be tax-exempt when they send payments to shareholders via the Netherlands. Uganda and other African governments impose capital gains tax on the sale of shares at interest rates between 30 and 35%. On October 24, the Australian House of Representatives approved a bill to ratify the current income tax agreement with Israel, according to information published on Parliament`s website. Over the years, calls for a complete review and abandonment of double taxation conventions (DBAs) have intensified, and civil society organizations have pointed out that many developing countries are losing money to developing countries because companies repatriate money without paying taxes. Uganda, as is the case with its colleagues in the region, is struggling on the continent to increase tax revenues to finance its budget priorities. The reduction in budget support from rich countries means that poor countries have to pay money themselves.