East African countries will develop a common strategy on taxing the digital economy
November 16th 2020
The member countries of the East African Community have decided to align their tax regulations in the digital economy. The decision taken on November 11, at the 48th meeting of their tax authorities, aims to protect the interests of all.
The tax authorities of Kenya, Uganda, Tanzania, Rwanda, South Sudan and Burundi, member countries of the East African Community (EAC), agreed on November 11, 2020 to develop a common strategy for the taxation of the digital economy in the sub-region. They hope in this way to increase income from the ICT sector.
In the final communiqué issued at the end of the 48th General Meeting of Commissioners of East African Tax Authorities, which was held virtually, these tax authorities said they had agreed to develop a common strategy “to deal with the taxation of the digital economy by addressing problems related to the legal framework, in terms of definitions, identification of actors and legal mechanisms ”.
Through this united front that the members of the ECA want to present, the objective is to put pressure on the global tech giants who are recording profits in their various markets. Forced to come to terms with everyone, they will not have the opportunity to take advantage of the weaknesses and other gray areas of the different tax systems.
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