Overview:
The URA has advised early filing for VAT, PAYE, and other taxes to bypass potential internet disruptions. Tax experts clarify if this early request is legally binding under Ugandan law.
KAMPALA, Uganda — The Uganda Revenue Authority is urging taxpayers to file and pay monthly taxes earlier than usual this week to avoid potential disruptions during the general election scheduled for Thursday.
The tax body issued a public notice encouraging the filing of returns for value-added tax, pay-as-you-earn, withholding tax and other levies by Monday, Jan. 12. Under Ugandan law, these taxes are typically due by the 15th day of the month.
The request comes amid public concerns regarding internet stability during the polling period. Because Uganda uses a digital self-assessment system, any connectivity issues could prevent taxpayers from meeting the statutory deadline.
“Timely compliance will help taxpayers avoid penalties and interest arising from late payment of taxes,” the URA said in its notice.
While the URA is framing the request as a proactive measure to help citizens avoid fines, some tax experts note that the advisory does not change the underlying law. Trevor Bwanika, an associate director at PwC Uganda, said that while the commissioner has an obligation to guide the public, the statutory deadline remains the 15th.
“The law has not changed,” Bwanika said. “This is basically an alert or awareness for people to know they should pay before they miss the deadline.”
The situation is complicated by the fact that Jan. 15 is both election day and a public holiday. Under the Interpretation Act, if a deadline falls on a holiday or a Sunday, it is typically extended to the next working day.
Some members of the business community have criticized the URA’s push for earlier payments. Justin Osillo, a partner at TGS Osillo, argued the timing is difficult for businesses already facing slow starts to the year and election-related uncertainty.
“Why don’t you move this deadline ahead instead of carrying it forward?” Osillo asked, suggesting that an extension would be more helpful to taxpayers than a request for early payment.
Failure to comply with tax deadlines in Uganda can be costly. For example, failing to file a return on time can result in a penalty of 200,000 shillings or 20 percent of the tax owed, whichever is higher.
Although authorities have stated there are no plans to shut down the internet, the URA appears to be moving to safeguard government cash flows against any unforeseen technical or social disruptions.