East African countries to set common digital economy tax strategy

During the 48th meeting of East African countries’ tax authorities, member countries of the East African Community revealed that they will adopt a common strategy for digital economy taxation. The common strategy will ‘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,’ as per the final communiqué of the meeting. The digital economy taxation strategy aims to address the challenges pertinent to the profits tech giants make at the expense of the small companies and the different tax systems across the region.