Auditor General demands tighter controls as tech giants pay Shs29b in tax

While digital tax collections from giants like Apple and Meta have hit 29.5 billion shillings, the Auditor General warns that a lack of independent verification is causing significant revenue leakage.

Uganda has successfully collected 29.5 billion shillings from global tech firms, but the country’s top auditor warns that weak oversight is allowing millions more to slip through the cracks. The Auditor General is now demanding tighter controls on how the government monitors foreign digital platforms, arguing that the current system of trusting companies to report their own earnings is insufficient.

In a report for the year ended Dec. 31, 2025, the Auditor General noted that while tax revenue from non-resident digital service providers is now nearly six times higher than the original 5 billion shilling target, the figure remains far below the country’s true economic potential. Major players like Apple, Meta, Google and Microsoft are among the 82 firms currently remitting taxes, yet the report suggests a significant portion of the digital economy remains hidden.

The primary concern for the watchdog is that the Uganda Revenue Authority has no independent way to verify the income these companies declare. Because payments for streaming, cloud storage and digital advertising often flow through offshore platforms and international card networks, the transactions are invisible to local tax systems. Unlike domestic businesses, these global giants are not currently integrated into the electronic filing systems used to track local trade.

This lack of visibility has led to what the Auditor General describes as a significant compliance gap. The report highlights that the list of 82 registered firms is not exhaustive, meaning many other digital service providers continue to generate revenue in Uganda without paying any tax. High-volume sectors such as online betting and digital education were singled out as areas where oversight is particularly thin.

To address these vulnerabilities, the government is moving to implement a national payment gateway through the Bank of Uganda. This infrastructure is expected to give the tax body real-time access to transaction data, shifting the burden of proof from the government to the service providers. The move is part of a broader effort to lift Uganda’s tax-to-GDP ratio from 13.4 percent toward the 15 percent benchmark recommended for developing nations.

The Auditor General’s call for reform insists that the success of the Uganda Revenue Authority should be measured against the actual scale of digital activity in the country rather than conservative revenue targets. Without the ability to track offshore payments, the government cannot accurately assess how much tax is being lost to under-declaration.

Beyond the tech sector, the national economy received a boost from the mining industry. Data from the Bank of Uganda shows gold earnings surged by 28.85 percent in December. Revenue from gold exports reached 823.68 million dollars, up from 639.26 million dollars in November, as the sector benefited from rising global prices and increased international demand.