This initiative is part of the Ugandan government’s ongoing commitment to help businesses recover from the pandemic. The initial amnesty, introduced in 2020, waived penalties and interest on income tax, value-added tax (VAT), and excise duty for businesses affected by the national lockdown. The second amnesty in 2023, which had a deadline of December 31, 2023, did not fully benefit all businesses due to lingering challenges caused by the pandemic. As a result, the government has extended the deadline to December 31, 2024, offering more time for businesses to settle their outstanding taxes.
In an effort to support businesses still reeling from the economic impact of the COVID-19 pandemic and improve tax compliance, the Uganda Revenue Authority (URA) has announced a tax amnesty. This waiver covers interest and penalties accrued on outstanding taxes as of June 30, 2023, for businesses that clear their principal tax by December 31, 2024.
URA headquarters Nakawa
ADVERTISEMENT
Recommended articles
The amnesty covers domestic taxes, including income tax, VAT, excise duty, lotteries and gaming taxes, and stamp duty. However, it does not apply to customs taxes. Sarah Chelangat, URA’s Commissioner for Domestic Taxes, explained that all taxpayers with outstanding principal taxes as of June 30, 2023, are eligible. Those who pay the full amount by the December 2024 deadline will have interest and penalties automatically waived. Partial payments will result in a proportional waiver.
Chelangat encouraged taxpayers to log into their Tax Identification Number (TIN) accounts on the URA portal to check their outstanding balances. She urged taxpayers to clear their dues before the deadline to avoid additional interest accruals, emphasising that payments made after December 31, 2024, will not qualify for the amnesty.
Businesses are encouraged to take full advantage of this opportunity to settle their tax obligations and avoid further penalties.
