FITSPA Convenes a Fintech Tax Policy & Compliance Breakfast Meeting to Advance an Enabling Tax Environment for Sector Growth

The Financial Technology Service Providers Association (FITSPA) last week convened a Fintech Tax Policy and Compliance Breakfast Meeting at Protea Hotel Kampala, bringing together fintech leaders, policymakers, tax authorities and technical experts to discuss how Uganda can build a tax environment that supports innovation, investment, sector growth and domestic revenue mobilisation.

Organised in partnership with the Ministry of Finance, Planning and Economic Development (MoFPED), the Uganda Revenue Authority (URA) and KPMG East Africa, the engagement provided a platform for constructive dialogue on tax policy, compliance obligations and proposed reforms affecting Uganda’s rapidly evolving fintech sector.

A Shared Vision for Growth and Revenue Mobilisation

Opening the meeting, FITSPA Chairperson and Chief Executive Officer of FutureLink Technologies, Mr. Vincent Tumwijukye, highlighted the growing contribution of the fintech sector to digital payments, financial inclusion, job creation, investment and the formal economy.

He noted that fintech has become an important contributor to Uganda’s economic transformation and emphasised the need for a tax framework that enables businesses to start, innovate, attract investment and scale while contributing to the country’s domestic revenue objectives.

Mr. Tumwijukye stressed that taxation should support, rather than unintentionally constrain, productive economic activity. He highlighted several areas requiring continued dialogue between industry and government, including the treatment of digitally executed loan agreements, the cumulative tax burden on digital financial services, VAT on technology and loan management systems, the application of tax laws to emerging fintech business models, and the treatment of bad debts for Tier IV Digital Credit Providers and Microfinance Institutions.

He also underscored the importance of growth capital in supporting Uganda’s fintech ecosystem, noting that investment in high-growth businesses can stimulate innovation, create jobs and expand the country’s future tax base.

He called for continued collaboration between FITSPA, MoFPED, URA and other stakeholders to develop a tax framework that is clear, fair, predictable and responsive to the realities of a rapidly evolving sector.

Government Calls for Sustained Industry Engagement

Delivering remarks on behalf of the Ministry of Finance, Planning and Economic Development, Principal Economist Mr. Gerald Namoma commended FITSPA for convening the engagement and described it as a timely platform for dialogue between government and the fintech industry.

He acknowledged the challenges of developing policy for a sector that continues to evolve rapidly through new technologies and business models. He therefore called for consistent and sustained engagement between government and the fintech community, rather than consultations taking place only when specific policy measures are being developed.

Mr. Namoma explained that government’s approach to tax policy development has increasingly involved the private sector earlier in the policy process. He encouraged fintech stakeholders to participate actively throughout the policy development cycle, including as proposals progress through the Ministry, Cabinet and Parliament.

He further noted that tax policy extends beyond revenue collection and plays an important role in supporting economic growth, investment, stability and prosperity. Highlighting the link between Uganda’s 10X Growth Strategy and the Domestic Revenue Mobilisation Strategy, he emphasised the importance of strengthening domestic revenue to support the country’s broader development ambitions.

Strengthening Tax Compliance Across the Sector

A key component of the meeting focused on strengthening understanding of tax compliance obligations within the fintech sector.

The Uganda Revenue Authority led a comprehensive presentation on tax compliance requirements and available incentives for fintech businesses operating in Uganda. The session provided practical guidance on corporation income tax, withholding tax, VAT, VAT on imported services, excise duty, stamp duty, EFRIS requirements, e-invoicing, transfer pricing documentation, record-keeping and reporting obligations.

The discussion came at an important time as recent amendments to Uganda’s tax laws have introduced new compliance requirements affecting businesses across the economy, including fintech companies. Participants received clarification on the practical implications of these changes and explored incentives that may support sustainable business growth.

URA also highlighted several tax incentives available to qualifying businesses, including income tax exemptions for eligible citizen-owned enterprises, capital allowances, foreign tax credits, VAT exemptions for qualifying financial services and locally developed computer software, among other relief measures.

The session gave fintech professionals an opportunity to seek clarification on complex tax matters while strengthening their understanding and capacity to meet their compliance obligations.

Industry Proposals for Tax Policy Reform

The meeting also featured a presentation by KPMG East Africa on proposed tax amendment recommendations for the fintech sector.

The discussion examined key tax challenges affecting fintech businesses and explored policy options aimed at creating greater clarity and a more enabling tax environment.

Among the issues discussed were the VAT treatment of fintech services not expressly covered under existing financial services exemptions, VAT on recharged transaction fees, VAT on imported technology and software platforms, withholding tax on fintech payment flows, bad debt deductions for Digital Credit Providers, and stamp duty obligations relating to digital loan agreements.

KPMG presented potential policy and administrative reforms intended to provide greater certainty for businesses while supporting government’s revenue objectives. The discussion also drew on regional perspectives from Kenya, Tanzania and Rwanda, providing insights into how neighbouring markets are addressing similar tax considerations within their fintech ecosystems.

Advancing Dialogue for a Stronger Digital Economy

Throughout the engagement, participants emphasised the importance of maintaining open and continuous dialogue between government, regulators, industry associations and fintech businesses.

The discussions reinforced the value of evidence-based tax reforms that balance domestic revenue mobilisation with the need to foster innovation, investment, financial inclusion and private sector growth.

The Breakfast Meeting provided fintech companies with an opportunity to share industry experiences, seek clarification on emerging tax issues and contribute to discussions shaping the future of Uganda’s digital economy.

As Uganda’s fintech sector continues to expand and play an increasingly important role in economic development, engagements such as these remain essential to ensuring that policy and regulatory frameworks evolve alongside innovation.

FITSPA appreciates the Ministry of Finance, Planning and Economic Development, the Uganda Revenue Authority, KPMG East Africa and all participants for their contribution to the engagement. Through continued collaboration and constructive dialogue, stakeholders can work towards a tax environment that promotes innovation, supports sustainable business growth and strengthens Uganda’s domestic revenue base.