URA offers 100% waiver on penalties for taxpayers

KAMPALA, Uganda — The Uganda Revenue Authority (URA) has announced a new tax amnesty, offering a 100% waiver on accumulated interest and penalties for taxpayers who settle their outstanding principal tax liabilities.

The URA, under the Ministry of Finance, issued a public notice stating that the waiver is part of an effort to promote voluntary compliance and support economic recovery. The move comes as businesses continue to face challenges from the aftereffects of the COVID-19 pandemic.

According to URA Commissioner General John Musinguzi, the waiver applies to all outstanding domestic tax liabilities as of June 30, 2024. To benefit, taxpayers must clear their principal tax by the new deadline of June 30, 2026. Those who pay only a portion of the principal will receive a proportional waiver on the associated interest and penalties.

Musinguzi noted that the new deadline was set to give businesses time to recover and reinvest. He emphasized that this will be the final tax amnesty offered by the authority.

The waiver will be applied automatically once a taxpayer clears the principal tax. Musinguzi encouraged all eligible taxpayers to take advantage of the opportunity, warning that failure to pay the principal by the deadline will result in the full application of all accrued interest and penalties.