URA Commissioner General, John R. Musinguzi
Uganda Revenue Authority (URA) has since July 2024 been implementing the waiver of interest and penalty to taxpayers who have paid principal tax outstanding as at June 30, 2023.
This is after the Government of Uganda introduced a tax amnesty through waiver of interest and penalty on outstanding principal tax as at June 30, 2023 in a bid to support businesses that are recovering from the economic impact of COVID-19.
According to URA, the amnesty applies to domestic taxes including corporation income tax, individual income tax, rental income tax, pay as you earn (PAYE), withholding tax (WHT), value-added tax (VAT), local excise duty, lotteries and gaming taxes, and stamp duty. The amnesty is intended to encourage tax compliance and provide relief to businesses that were affected by the pandemic.
In order to benefit from the waiver, a taxpayer is required to pay their outstanding principal tax by December 31, 2024.
“The waiver will be applied automatically upon payment confirmation. Where a taxpayer pays a portion of the principal tax outstanding as at June 30, 2023, by December 31, 2024, the interest and penalty relating to the principal tax paid shall be waived proportionately,” URA says in a statement, adding: “This waiver will relieve taxpayers of their tax burden and enable reinvestment of the savings to grow their businesses. Taxpayers are therefore encouraged to take advantage of this golden opportunity and clear their outstanding principal tax as soon as possible.
To view one’s outstanding tax balance, a taxpayer may log into their Tax Identification Number (TIN) account on the URA web portal or visit the nearest Domestic Taxes office for assistance.”
It is important to note that only taxpayers who pay their principal tax by December 31, 2024, will benefit from the waiver, URA adds.
