Ugandan officials head to Paris for talks on double taxation agreement
Double taxation agreements are designed to clarify which country has taxing rights over specific types of income, including dividends, interest and royalties
KAMPALA, February 19, 2026 — A delegation from Uganda is in Paris for the second round of negotiations on a proposed Double Taxation Agreement [DTA] with France, in a move aimed at strengthening bilateral investment and trade ties.
The team is led by Moses Kaggwa, Director of Economic Affairs at Uganda’s Ministry of Finance, Planning and Economic Development [MOFPED]. The talks are being held with officials from France’s Ministry for the Economy, Finance, Industrial and Digital Sovereignty.
If concluded, the agreement would establish clear rules on how income earned between the two countries is taxed, helping to prevent the same income from being taxed twice.
Boosting investor confidence
Double taxation agreements are designed to clarify which country has taxing rights over specific types of income, including dividends, interest and royalties. By setting out predictable tax obligations, DTAs reduce uncertainty for businesses and investors operating across borders.
For investors, clarity on where to pay tax — and at what rate — supports long-term financial planning and reduces the risk of unexpected liabilities arising from conflicting tax systems.
DTAs also typically provide for reduced withholding tax rates on certain cross-border payments, making it more attractive for companies to invest or repatriate profits.
Combating tax evasion
Beyond promoting investment, double taxation agreements play a critical role in strengthening tax compliance. They include provisions for the exchange of information between tax authorities, helping governments detect undeclared income and curb tax evasion and avoidance.
Such arrangements also enable tax authorities to recover taxes owed by residents who may have attempted to avoid paying tax in one jurisdiction while residing in another.
Supporting economic cooperation
Uganda has previously signed DTAs with several countries, including Denmark, India, Italy, Mauritius, the Netherlands, the United Kingdom and South Africa. Expanding its treaty network to include France would further integrate Uganda into the global tax framework and potentially enhance its appeal as an investment destination.
Globally, countries often rely on established model conventions when negotiating bilateral tax treaties. These models shape international tax treaty practice and provide a framework for balancing taxing rights between source and residence countries.
The United Nations Model Double Taxation Convention, in particular, is designed to support developing countries in drafting and negotiating treaties that safeguard their revenue interests while maintaining an investment-friendly environment aligned with national development goals.
The outcome of the Paris negotiations is expected to signal both countries’ commitment to deepening economic cooperation and creating a more predictable tax environment for cross-border investors.
https://thecooperator.news/ugandan-traders-decry-over-taxation/
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