Data collection: The DFS TaxMap portal collects publicly available information on digital financial services and how they are taxed from a variety of sources, including government reports, academic papers, news articles, and other relevant publications. The sources are selected based on their credibility, relevance, and the time of their publication. The data collection process is ongoing to ensure that the portal provides up-to-date and accurate information.
Data processing: The collected data is reviewed, analysed, and synthesised to extract relevant information on the taxation of digital financial services. The information is organised and presented in a user-friendly manner, such as tables, graphs, and infographics.
Country profiles: The DFS TaxMap portal provides country profiles that extract information from the World Bank’s Global Findex data on digital payment usage, mobile money accounts, and financial institution accounts and from the Financial Access Survey from the International Monetary Fund on the usage and growth of financial services and mobile money. The country profiles are based on the latest available data from the Global Findex database, which is produced by the World Bank. The profiles are updated periodically to reflect changes in the data.
Legal review: The application of taxes on digital financial services is based on a legal review of applicable tax legislation.
Information updates: The information expressed on the DFS TaxMap portal is compiled from sources believed to be reliable at the date last updated. It will next be updated in the event of changes in the underlying data or tax regime. If you are aware of any changes or inaccuracies, please notify us at ictddigitax@ids.ac.uk.
Disclaimers: The purpose of the DFS TaxMap portal is to inform but not to assess or comment on the efficacy of digital payments or taxes. The information presented on the portal is not intended to provide legal or financial advice, and users should seek professional advice before making any decisions based on the information presented.
User interface design: The DFS TaxMap portal has a user-friendly interface that allows users to easily access and navigate the information presented. The interface includes features such as filters and sorting to help users find the information they need quickly and efficiently.
Other taxes on DFS: The DFS TaxMap portal provides a high-level overview of sector-specific taxes related to DFS. It's important to note that some countries also impose VAT on DFS. For example, Tanzania levies an 18% VAT on charges or fees paid to banks, non-bank financial institutions, or telecom service providers, in addition to a 10% excise duty on fees. On the other hand, Uganda and Kenya do not impose any additional VAT on fees beyond sector-specific taxes. In countries where excise duty is not applicable, VAT may be imposed. For instance, Côte d'Ivoire applies an 18% VAT on money transfer operation fees paid to both banking and non-banking institutions. In the context of telco providers, Rwanda imposes an 18% VAT on mobile banking, while Zimbabwe has implemented a 15% VAT (since 1st January 2023) as DFS does not appear to be included in the VAT exemption.
