The Ambassador of France to Uganda, His Excellency Xavier Sticker yesterday met with Sarah Chelangat, the URA Commissioner for Domestic Taxes to discuss areas of common interest and strengthen their working relations.
The discussion centered on taxes, incentives and devising solutions to the tax-related challenges affecting French investors in Uganda.
Chelangat educated the French business community on the different tax heads and tipped them on the tax incentives that could benefit them. She encouraged them to understand Uganda’s tax regime to navigate business effectively.
The Commissioner also urged the investors to adopt the Electronic Fiscal Receipting and Invoicing Solution and Digital Tax Stamps, stating that these solutions are a sure way to enhance compliance and reduction of audits.
During the engagement, the French raised concerns about unstable ledgers and credit notes, which they say take a long to be updated, leading to delayed refunds and multiple audits.
In response, Chelangat revealed that URA is harmonizing different audits so that they can streamline and conduct them once to avoid frustrating taxpayers with many visits.
She added that the authority is also developing a system to effectively manage credit notes.
In his remarks, H.E. Xavier emphasized the need for cooperation through dialogue to enhance working relations, create a better investment environment, and address tax challenges.
Uganda has in recent years become a destination for foreign investment in the East African region, largely due to stable and consistent macroeconomic policies, a liberalized business environment, and increased regional trade.
The country has benefited from investments in telecommunications, real estate, mining, and insurance, with most of the French in the oil and gas sector.
The government has also promoted direct investment through the provision of tax incentives that favor different sectors, contributing to Uganda’s vision 2040 to transform Uganda into a middle-income country.
