URA headquarters in Nakawa, Kampala.
What is the new waiver under Section 47B of the Tax Procedures Code Act about and why should I be interested?
The New waiver under the Tax Procedures Code Act Section 47B is another opportunity the government has given to Taxpayers who have tax arrears to settle their liabilities without worrying about the burden of interest and penalty.
The waiver covers outstanding liabilities as at June 30, 2024; if you settle your principal tax liability by 30th June 2026, the interest and penalties relating 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.
Why is the Government of Uganda offering another waiver?
The government recognizes the challenges taxpayers face and offers this waiver as an incentive for voluntary compliance. We also noted that most taxpayers had missed out on the previous two waivers due to cash constraints making it difficult to settle their tax obligations within the limited waiver period. We have now granted you one full financial year i.e. from July 2025 to June 2026 to enable you plan better. You demonstrate responsibility by taking advantage of this waiver, and the government will reward you by waiving the additional charges.
Who qualifies for the waiver and what types of taxes are covered by this waiver?
Every taxpayer with outstanding principal tax under domestic taxes as at 30th June 2024 qualifies for the waiver. Taxpayers who have outstanding taxes in customs are not covered by this waiver.
The waiver applies to all domestic taxes including; Income tax, value added tax, Local excise duty, Rental tax, Gaming tax and others. However, it does not cover Customs taxes and duties. So, if you have any outstanding domestic taxes for the periods specified, you can clear them without worrying about additional interest and penalties.
Which penalties are not covered by the waiver?
The waiver doesn’t cover deterrent penalties that are not based on principal tax and these include;
- Penal tax in relation to digital tax stamps;
- Penal tax in relation to non-compliance with EFRIS;
- Penalty for failing to apply for registration;
- Penal tax for failure to provide information;
- Court imposed penalty and interest.
These penalties and related interest will continue to accrue even if you settle your principal tax by the 30th June 2026 deadline until they are paid. Therefore, it’s important to understand what is and isn’t covered by the waiver when planning your payments.
How does this waiver work?
There is NO application required but only payment towards the outstanding tax liability for the qualifying periods. (i.e. as at 30th June 2024)
A taxpayer who has outstanding liability for the tax periods with a due date prior or on 30th June 2024 makes payment towards the liability.
Penalty and Interest outstanding shall be waived where the taxpayer pays the principal tax by 30th June, 2026.
- A taxpayer shall benefit from 100% waiver of penal tax and interest outstanding as at 30th June 2024 where the taxpayer pays all of the principal tax by 30th June 2026.
- However, where a taxpayer only pays part of their principal tax by 30th June 2026 the interest and penalty shall be waived on a pro-rata basis (i.e. to the extent of the principal tax paid).
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.
What is the deadline for this waiver?
The waiver shall expire by 30th June 2026; all payments towards the qualifying liability i.e as at 30th June 2024 must have been paid by 30th June 2026 to qualify for the waiver of interest and penalties. Don’t let this opportunity pass, act now and enjoy a fresh start in the new year.
What happens if I do not pay my outstanding principal tax by 30th June 2026?
If you fail to settle your outstanding principal tax by the deadline, the waiver will not apply, and you will be required to pay the principal tax including accrued interest and penalties. It’s important to act promptly to avoid this.
What happens if I partially pay my outstanding principal tax before the deadline?
If you pay a portion of your outstanding principal tax by 30th June 2026, 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.
Will the waiver apply to interest and penalties that accrued after 30th June 2024?
Yes, the waiver applies to the entire interest and qualifying penalties that accrued after 30th June 2024 relating to the qualifying liability. (i.e. liabilities with due dates that fall before or on 30th June 2024). Taxpayers are advised to pay their outstanding principal tax as soon as possible to avoid further accumulation of interest and penalties.
What if I disagree with the principal tax reflected on my ledger?
If you notice any discrepancies/anomaly on your tax ledger, please contact URA immediately for assistance. You will be helped to reconcile any issues so that you can pay the correct liability to benefit from the waiver. URA established the Ledger Reconciliation Section dedicated to resolve any issues relating to tax positions.
What system improvements has URA implemented to ensure a smooth and automatic waiver process compared to last years’ experience?
To ensure a smooth and automatic waiver process compared to last years’ experience, URA through its IT Department has deployed critical system updates and resolved past anomalies to guarantee that taxpayers’ accounts reflect accurate tax positions. The enhanced system now supports real-time data integration and validation which reduces on the errors that previously affected the process.
How does URA expect this waiver to impact taxpayer compliance, business recovery, and the broader economy?
Voluntary Compliance of taxpayers is expected to improve significantly. For many businesses, the accumulation of tax penalties and interest can be a significant burden, sometimes leading to tax evasion or avoidance. The waiver, particularly of penalties and interest, reduces this financial burden, making it easier for taxpayers to bring their obligations up to date and comply with tax laws. This is expected to improve overall compliance rates since taxpayers are more likely to pay their taxes when they have the opportunity to reduce the amount due through the waiver.
By relieving businesses and taxpayers from the weight of tax arrears, URA is also directly contributing to the stimulation of economic activity since business growth is supported by helping companies recover from cash flow issues caused by economic disruptions.
You can reach us for more clarification or support through toll-free lines (0800117000 and 0800217000) and a WhatsApp number (+256772140000) and touchpoint.ura.go.ug
You can also visit your local tax office for personalised support.
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