Uganda has successfully brought 82 global tech giants into its tax net, but the country’s top auditor warns that the 29.5 billion shillings collected so far represents only a fraction of what is truly owed. The Auditor General is now calling for a drastic overhaul of how the government monitors foreign digital firms, arguing that the current system relies too heavily on the honesty of the companies themselves.
The latest report for the year ended Dec. 31, 2025, shows that revenue from non-resident digital service providers has surged to nearly six times the initial 5 billion shilling projection. While major players like Apple, Meta, Amazon and Google are now remitting taxes, the Auditor General cautions that Uganda remains vulnerable to significant revenue leakage due to a lack of independent verification.
The core of the issue is that the Uganda Revenue Authority currently has no way to double-check the figures submitted by these tech giants. Unlike local businesses that are integrated into domestic tax tracking systems, global platforms process payments through offshore networks and international card gateways. This means the tax authority is essentially forced to take these companies at their word.
According to the Auditor General, this lack of visibility is particularly concerning in high-volume sectors such as online betting, music streaming and cloud computing. The report notes that the current list of 82 taxpayers is not exhaustive and likely excludes many other providers who are currently operating in the country without paying their share.
The Auditor General’s call for tougher oversight comes at a time when Uganda is struggling to lift its tax-to-GDP ratio, which currently sits at 13.4 percent. This remains below the 15 percent benchmark recommended for developing nations to ensure sustainable growth. To bridge this gap, the government is moving to implement a national payment gateway. This system, being procured through the Bank of Uganda, is designed to give tax officials real-time access to digital transaction data, finally allowing them to see the true scale of the digital economy.
While the tax body has outperformed its early expectations, the Auditor General insists that success must be measured against the true scale of economic activity rather than conservative targets. Without the ability to verify declarations, the government cannot confidently state how much revenue is being lost to the compliance gap.
In a separate economic boost, the Bank of Uganda reported that gold earnings rose sharply in December. Revenue jumped by 28.85 percent to 823.68 million dollars, up from 639.26 million dollars in November. This increase was attributed to higher global prices and increased demand, providing a much-needed lift to the country’s export performance.
