Africa-Press – Uganda. The Uganda Revenue Authority (URA) has announced a fresh opportunity for taxpayers to settle outstanding tax liabilities without the burden of paying interest or penalties.
This latest tax waiver, issued under Section 47B of the Tax Procedures Code Act, is aimed at encouraging voluntary compliance among individuals and businesses who have struggled to meet their tax obligations.
The waiver covers outstanding principal tax liabilities as of June 30, 2024. Taxpayers who settle their principal tax by this date will have any related interest and penalties waived.
It applies to domestic taxes only, and those with unpaid taxes in customs are not included under this waiver.
“The new waiver is an opportunity the government has given to taxpayers to settle their liabilities without worrying about the burden of interest and penalties,” said URA Commissioner General John Rujoki Musinguzi in a statement.
The government recognizes the financial challenges faced by many taxpayers, particularly those who missed previous waiver windows due to cash constraints.
The waiver is designed both as an incentive for voluntary compliance and as relief for taxpayers seeking to regularize their tax affairs.
“Voluntary compliance improves tax collection significantly. For many businesses, accumulated penalties and interest can become a heavy burden, sometimes leading to tax evasion or avoidance. Tax waivers provide relief and encourage compliance by reducing the total amount payable,” Rujoki Musinguzi explained.
Taxpayers making partial payments will also benefit from a pro-rata waiver, in which interest and penalties are waived in proportion to the principal tax paid. This provides flexibility for businesses or individuals who may not be able to clear their full tax liability immediately.
However, certain penalties are not included in this waiver. These include penalties related to digital tax stamps (DTS), EFRIS, non-compliance, failure to register, failure to provide information, as well as court-imposed penalties and interest.
Taxpayers are advised to consult the URA for guidance on their specific obligations and eligibility.
URA’s move underscores the government’s commitment to improving tax compliance while supporting taxpayers through financial relief mechanisms.
By providing a clear deadline and transparent conditions, the waiver seeks to reduce arrears, streamline collections, and allow taxpayers to reset their accounts without being burdened by accumulated costs.
Commissioner General Rujoki Musinguzi urged all eligible taxpayers to take advantage of the waiver before the June 30, 2024 deadline to benefit fully from the relief measures.
