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East African countries to set common digital economy tax strategy

Monday, 16 November 2020 17:07
East African countries to set common digital economy tax strategy

(Ecofin Agency) - Member countries of the East African Community announced on Nov. 11 they will set a common strategy for digital economy taxation. This decision made during the 48th meeting of the countries’ tax authorities seeks to safeguard the interest of all.

In the final communiqué issued at the end of the meeting, the tax authorities said they agreed to develop a common strategy “to deal with the taxation of the digital economy by addressing the problems linked to the legal framework, in terms of definitions, identification of actors and legal mechanisms.”

Through this united vision, the ECA members want to put pressure on the global tech giants that are making profits in their various markets. Forced to deal with all, these companies will not have the opportunity to take advantage of the weaknesses and other grey areas of the different tax systems.





 
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