What is Section 47A of the Tax Procedures Code Act, and why should I be Interested?

Section 47A of the Tax Procedures Code Act is a provision that offers a waiver on interest and penalties for taxpayers who have outstanding taxes as of June 30, 2023. If you settle your principal tax lability by December 31, 2024, the interest and penalties related to that liability will be waived. This is a unique opportunity to clear your tax obligations without the added burden of penalties and interest, allowing you to start afresh with your tax compliance.

How does this waiver work in simple terms?
Imagine you borrowed a book from the library but forgot to return it on time. As a result, late fees start accumulating. Now, the library is offering a a de deal: if if you return the book by the end of the year, they will waive all the late fees, and you’ll only need to return the book. This is similar to how the Section 47A waiver works. By paying the principal tax amount you owed as at June 30, 2023, the URA will forgive all the accumulated interest and penalties. How ever, you need to make this payment by December 31, 2024.

What types of taxes are covered by this waiver?
The waiver applies to all domestic tax es under the Tax Procedures Code Act namely income tax, value added tax, excise duty, rental tax, and others. How- ever, it does not cover Customs taxes and duties. So, if you have outstanding domestic taxes, you can clear them with out worrying about additional interest and penalties.

Why is the Government of Uganda offering this waiver?
The government recognizes the challenges taxpayers face and offers this waiver as an Incentive for voluntary compliance. It’s also a way to encourage taxpayers to settle their dues without the pressure of accumulating penalties and interest. You demonstrate responsibility by taking advantage of this waiver, and the govenment will reward you by waiving the additional charges.

How can I check if I qualify for this waiver, and what I owe?
To determine if you qualify for the waiver and find out what you owe, simply log into your URA account on the URA portal (www.ura.go.ug) by using your Tax Identification Number (TIN) and password. Once logged in, go to the “Reports” section, click on “Tax Statement and then “Submit” to view your outstanding tax liability, including the principal tax, penalties, and interest per tax type.
if you prefer, you can also generate a payment slip by selecting “Payment” under e-Services”, select DT as a “Payment Type” then “Period before July 2021”, then “Tax Head” and check “Pay Fully”. For “Periods after July 2021”, click “Account Payment”, select “Tax Type”, “Fetch Outstanding”, then click on “Show Period-wise Break-up” to see the principal tax per period.
If you notice any discrepancies in your ledger, please contact URA immediately for assistance. You will be helped to reconcile any issues so that you benefit from the waiver.
What happens If I do not pay my out standing principal tax by December 31, 20247
If you fail to settle your outstanding principal tax by the deadline, the waiver will not apply, and you will be liable to pay the accrued interest and penalties in addition to the principal tax. It’s essential to act promptly to avoid this.

Is there a deadline to apply for this waiver?
There is no application required. However, there is a deadline and you must pay your outstanding principal tax by December 31, 2024, to qualify for the waiver of inter- est and penalties. Don’t let this opportunity pass by take action now and enjoy a fresh start in the new year.

What happens if I partially pay my outstanding principal tax before the deadline?
If you pay a portion of your outstanding principal tax by 31st December 2024, the interest and penalty related to the portion you paid will be waived proportionately For example, if you pay 50% of your principal tax, then 50% of the corresponding interest and penalties will be waived.

What if I disagree with the principal tax reflected in my ledger?
If you disagree with the principal tax amount in your tax ledger, it’s important
to contact URA promptly for a reconciliation. This ensures that any discrepancies are resolved in time so you can take full advantage of the waiver.
Will the waiver apply to interest and penalties that accrued after 30th June 2023?
No, the waiver does not apply to any inter est and penalties that accrued after June 30, 2023. Taxpayers are advised to pay their outstanding principal tax as soon as possible to avoid further accumulation of interest and penalties.
How can I get more help or information about this waiver?

You can contact URA for assistance
Are there any penalties or interest that are not covered by the waiver? Yes, the waiver under Section 47A does not cover penalties and interest that are not directly related to the principal tax. Specifically, the following are excluded