Double Taxation Agreement Between Uganda And Netherlands

As a result of tax experience with the telecommunications company Zain International BV and the independent company Explorer Heritage Oil and Gas Ltd – when the two companies separately objected to the payment of capital gains tax (CGT) after the transfer of their interests to other companies, the government announced in 2014 its intention to renegotiate all double taxation agreements/contracts (DBA/Ts) with other countries. The Uganda Revenue Authority estimates that between 2010 and 2017, the country lost at least $3 billion (Shs1 1 trillion), or 16% of its total tax revenue in terms of tax incentives and tax exemptions. Losses could be recovered when Uganda begins extracting oil, experts say. However, an Oxfam study shows that more than $1 trillion worth of oil has been abandoned due to unfavourable tax developments with the Netherlands, write Freeric Musa Musa Ladu. RecommendationsOxfam recommends, among other things, that the revised DBA between Uganda and the Netherlands include a higher tax rate on dividends – at least 10 per cent for participatory dividends (large shareholders) and 15 per cent for portfolio dividends (small shareholders) to revise the language of the fight against contract abuse, to avoid double taxation, but also to facilitate double non-taxation and to determine whether Uganda has suffered losses from foreign-owned companies to ensure the effectiveness of anti-abuse provisions. [6] The renegotiation began in September 2019. Oxfam and its partners met with the Dutch delegation in Kampala. See uganda.oxfam.org/latest/blogs/role-strategic-partnerships-fight-… Previously, researchers at the London School of Economics (LSE) estimated that the reduced withholding rate on dividends fell between $8 million and $24 million (Shs29b and Shs89b), but Oxfam said with the recent absorption of FDIs in Uganda and the expected start of commercial production, “these amounts are likely to increase significantly.” On the eve of the next meeting of EU finance ministers (ECOFIN) on 6 October, Oxfam is publishing a report showing how the Uganda-Netherlands double taxation convention prevents Uganda from a fair share of future oil revenues for the French oil group TOTAL and other international oil companies.

About Author HappyLegs

HappyLegs is a small hobby kennel located on 18 acres just north of Ann Arbor, Michigan. We have been breeding champion and companion bullmastiffs since 1986. HappyLegs is an AKC Breeder of Merit and in 2016 we were honored as the American Kennel Club Breeder of the Year.