URA Announces Extended Tax Amnesty to Boost Business Compliance

In a continued effort to ease the financial strain on businesses still recovering from the economic impact of the Covid-19 pandemic, the Uganda Revenue Authority (URA) has announced an extension to its tax amnesty program. This waiver covers interest and penalties on outstanding taxes as of June 30, 2023, for taxpayers who settle their principal tax by December 31, 2024.

This latest move follows the government’s commitment to provide relief to businesses hit hard by the pandemic. The initial tax amnesty was introduced in 2020, waiving penalties and interest on unpaid taxes as of June 30, 2020, and a second amnesty followed in 2023. However, many businesses struggled to meet the deadlines, prompting the extension to 2024.

The amnesty applies to domestic taxes, including income tax, value added tax, excise duty, lotteries and gaming taxes, and stamp duty. It does not extend to customs taxes. According to URA Commissioner for Domestic Taxes, Sarah Chelangat, businesses with unpaid taxes as of June 30, 2023, can take advantage of this relief if they pay their outstanding principal by the new deadline.

“If a taxpayer pays their outstanding principal tax in full by December 31, 2024, URA will automatically waive the interest and penalties that had accrued as of June 30, 2023,” Chelangat said. Partial payments will result in a proportional waiver, but any interest accrued after June 30, 2023, will not be included in the amnesty.

Chelangat encouraged businesses to review their tax balances on the URA web portal to ensure they are taking full advantage of the waiver. She also advised taxpayers to act promptly to avoid missing the deadline and incurring further interest beyond the cutoff date.

This extended amnesty offers businesses a much-needed reprieve as they continue to rebuild and stabilise in a challenging economic climate.