Uganda, March 26 -- Uganda has faced challenges in its quest to mobilise enough domestic resources to finance service delivery. Uganda has a large informal sector and therefore enormously hard to collect revenues from it.

Yet, among potential sources of revenue that the country can look up to is the taxation of non-resident digital companies.

The growth of the digital economy over the recent past has raised debates about taxes that digital companies pay and where they pay them. These discussions arise from the peculiar nature of the operation of digital businesses. For instance, such businesses do not require a physical presence in countries where they have sales, as they can easily reach their customers remotely.

Moreover, the differe...