Content sections
Contact information:

Oxfam Uganda - Winnie Kyamulabu Mukalazi, winnie.kyamulabi.mukalazi@oxfam.org

Oxfam France – Pauline Leclère, pleclere@oxfamfrance.org

Oxfam Novib - Jules van Os, jules.van.os@oxfamnovib.nl

Notes to editors:

[1] Following the farm-down of the whole of Tullow Oil’s assets – one of the original project developer – in April 2020, and pending final approval of the transaction by the Ugandan authorities, TOTAL will hold 66.67% of the project’s shares while CNOOC will hold 33.33% of the shares. The State of Uganda has a back-in right (15%) which it has not exercised yet.

[2] Traditionally, developing countries enter into DTAs with wealthy countries as part of broader efforts to attract foreign investment and multinational companies into their countries. Due to the negotiation experience gap between wealthy and developing countries and the technical complexity of the treaty, DTAs often result in developing countries surrendering important taxation rights and generating unexpected revenue losses over the years. DTAs restrict or fully prevent the capacity of a source country to levy taxes – known as withholding taxes – on different forms of cross-border payments, including dividends, interest, royalties and technical fees. As a result, multinational companies are able to shift profit out of developing countries paying very little or no tax. Treaty shopping has now become a global issue and refers to the attempt by a person that is not a resident of one of those countries to benefit from that treaty and effectively reduce its tax rate.

[3] https://www.oxfam.org/en/research/netherlands-tax-haven

[4] According to IMF data, and as of the end 2018, the Netherlands was the top investor country in Uganda in terms of FDI stocks: $ 3.7 billion out of a total of $ 9.3 billion

[5] Hearson, Martin and Kangave, Jalia (2016) A review of Uganda's tax treaties and

recommendations for action. Working paper, 50. Institute of Development Studies, International

Centre for Tax and Development, London, UK. ISBN 9781781182956

http://eprints.lse.ac.uk/67868/1/Hearson_A_Review_of_Uganda_Tax.pdf

[6] Renegotiations started in September 2019. Oxfam and its partners met with the Dutch delegation in Kampala. See https://uganda.oxfam.org/latest/blogs/role-strategic-partnerships-fight-against-economic-inequality-through-influencing

[7] Both the IMF and the World Bank have recently provided financial assistance to Uganda, for a combined total of about $ 650 million.

[8] The sector has been allocated only 6 .4% of the national budget in 2019/2020, against a 15% target as announced by the Government.

[9] 375 per 100 000 living births. Uganda ranks 157 out of 185 countries. Source: World Bank

[10] The Southern and Eastern Africa Trade Information and Negotiations Institute (SEATINI) in Uganda carries out research on policy and practices that impact people. SEATINI partners with Oxfam and others to publish the Fair Tax Monitor. See https://seatiniuganda.org/