Taxation of Diaspora Wealth: Ofcourse @URAuganda is not a policy maker but rather a policy implementer. On this, URA will be moving under “Convention on Mutual Administrative Assistance in Tax Matters Implementation Act, 2023”.
Well, there is a need for a rebalanced approach on this issue. Everyday managers of our economy seated @mofpedU will need to eagle eye this one! Why?
I think the focus of government should be to create, expand, and implement incentives that attract and retain capital in the country. Instead of focusing on taxing assets abroad—which may already be facing tax obligations in other jurisdictions and is likely to amount to double taxation, especially in countries where Uganda has no double-taxation agreements—let’s provide tax rebates to encourage those investing abroad to invest here at home.
Our tax code should operate at a strategic level: attract investment and generate more tax revenue through value creation rather than through punitive measures.
The liberty for investors to repatriate profits (after paying taxes) is one of the measures putting Uganda ahead as a foreign investment destination. Indeed, with broader incentives and good economic management, most investors are choosing to reinvest their profits in Uganda. The country would do well to keep that approach.
By : M. Rwakakakamba
