Foreign Capital and Taxation as a matter of national interest

Culture

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By Ojok William There is a general presumption and saying that capital has no home but within realistic parameters the home of capital is its place of origin because it always goes back with its profits or returns on investments. Capital holds much more value in countries like Uganda where fixed deposits have monthly interest returns of up to 15% and 25 – 30% if invested in loans through commercial Banks as compared to developed countries where interest on loans is as low as 5%, 1% or even 0.5%. In some countries deposits actually accumulate a charge instead of earning interest. Once foreign capital is brought in Uganda, it’s a requirement as provided under section 117 of the Financial Institution Act that a Financial Institution should acquire authorization from Bank of Uganda for regularization of such Financial Institution business meaning equally such Financial Institution Business attracts income Tax liabilities that should be paid to the Ugandan government for collective National development. Foreign loans are very healthy for the economy as they attract capital, however, they should be done within parameters of the law where both the banks and Uganda as a nation benefit with government taxes paid instead of the...

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