Uganda has embarked on strengthening its investment ties with Europe by dispatching a delegation to France for fresh negotiations on a proposed double taxation agreement (DTA).
The Director of Economic Affairs at the Ministry of Finance, Moses Kaggwa, on Tuesday, February 18th, 2026 led a team in Paris for the second round of talks with officials from France’s Ministry for the Economy, Finance, Industrial and Digital Sovereignty.
The proposed Double Taxation Agreement (DTA) between Uganda and France is expected to set out clear rules on how income earned by investors operating in both countries will be taxed.
Kaggwa noted that at the heart of the discussions is the need to eliminate the risk of the same income being taxed twice once in Uganda and again in France.
“If our engagements happen to be successful the agreements will remove uncertainty for businesses and individuals investing across borders,” Kaggwa said.
By defining which country has the right to tax specific types of income including dividends, interest, royalties and business profits a DTA simplifies compliance and reduces disputes.
A year ago, on February 20th, 2025, the French Treasury expressed interest in establishing a Double Taxation Agreement (DTA) with Uganda to facilitate investment and strengthen economic cooperation between the two nations.
During a meeting between Uganda’s Secretary to the Treasury, Mr Ramathan Ggoobi, and Mr William Roos, Assistant Secretary for Multilateral, Development, and Trade Affairs at the French Treasury, discussions focused on taxation, investment, and debt management.
The meeting ended with both sides agreed to continue discussions on taxation policies, including exchange programs to explore best practices in tax collection and exemptions.
DTA Business Benefits
For investors, clarity on where to pay and how much tax to pay is critical. It allows companies to plan finances with greater confidence and lowers the cost of doing business. This, in turn, can make Uganda more attractive to French firms seeking opportunities in sectors such as energy, infrastructure, agriculture and manufacturing.
Beyond easing the tax burden, DTAs also strengthen cooperation between tax authorities. The agreements typically provide for exchange of information on income declared by taxpayers, a move aimed at curbing tax evasion and aggressive tax avoidance.
With such engagements tax Authorities in both countries can also support each other in recovering taxes owed by residents who attempt to shift income across borders to escape obligations.
Uganda has steadily expanded its network of double taxation agreements as part of its broader strategy to position itself as a competitive investment destination.
Currently Uganda has similar ongoing arrangements with Denmark, India, Italy, Mauritius, the Netherlands, the United Kingdom and South Africa.
Officials argue that sealing a deal with France would not only deepen economic ties but also send a signal that Uganda is committed to predictable and transparent tax policies a factor increasingly weighed by global investors before committing capital.
