East Africa to develop joint strategy for taxation of digital economy

Source: Xinhua| 2020-11-12 00:50:16|Editor: huaxia

NAIROBI, Nov. 11 (Xinhua) -- Tax authorities of the East Africa Community (EAC) member states on Wednesday agreed to develop a joint strategy for taxation of the digital economy.

The authorities from Kenya, Uganda, Tanzania, Rwanda, South Sudan and Burundi said that a digital tax could help boost revenues required to fund delivery of public services.

"We have agreed to develop a joint strategy for the East African Revenue Authorities to address the taxation of the digital economy by addressing issues to do with the legal framework in terms of definitions, identification of players and the legal mechanisms," they said the communique that was released after the 48th East African revenue authorities commissioners general meeting held virtually.

During the biannual meeting, the tax officials of the six countries also agreed to fast track the integration of domestic tax systems in the region.

The tax authorities also decided to come up with an agreed framework on how to address base erosion and profit shifting and illicit financial flows within the EAC.

"This will be addressed through legislation covering the various business models and administrative measures," the officials said.

According to tax officials from the region, all revenue authorities reported declining revenue performance during the period of March to September due to the COVID-19 pandemic with the greatest decline being registered in May.

"In the quarter of July to September, the revenue growth in the region ranged from -44.9 percent to 2.1 percent. This was unprecedented bearing in mind that the revenues have on average been growing at double digits," they said. Enditem