How tax waivers can help you close the year debt-free

2026-03-25 - 06:14

The Covid-19 pandemic hit businesses hard, leaving many struggling to meet their tax obligations while keeping afloat. To ease this burden and encourage voluntary compliance, the government of Uganda introduced a series of tax waivers forgiving penalties and interests that had accumulated as at June 30, 2020, June 30, 2023, and now June 30, 2024. In simpler terms, a waiver means the government forgives the extra charges (penalties and interest) that build up when taxes are paid late or not paid at all. In order to benefit, taxpayers must first clear the main tax, which is the principal owed. The more principal tax one pays, the more penalties and interest are cancelled. This pronouncement of the current waiver of interest and penalties was made in the 2025/26 budget speech, in which Matia Kasaija, the minister for Finance, Planning and Economic Development, announced that the amendment of Section 47B of the Tax Procedures Code Act (TPCA) to provide for a waiver on interest and penalties outstanding as at June 30, 2024. To benefit from this waiver, taxpayers must settle the principal tax related to any domestic tax as stipulated in the TPCA, namely Income Tax, Value Added Tax (VAT), Excise Duty, Rental Tax, and others, by June 30, 2026. Upon payment, the interest and penalties related to that liability will be waived. However, not all penalties qualify. This waiver does cover penalties arising from defaulting on customs duties or those arising from offences, specifically the following: • Penal tax for failure to provide information, • Penal tax related to digital tax stamps. (DTS) • Penal tax related to non-compliance with the Electronic Fiscal • Receipting and Invoicing System (EFRIS). • Penalty for failure to register for taxes • Any court-imposed penalties and interest. Therefore, taxpayers can check to establish whether they qualify for the waiver and verify how much they owe, by simply logging into their URA account on the URA portal (www.ura. go.ug) using their Tax Identification Number (TIN) and password. Click “Payment” section, select payment type as “Domestic tax”, choose basis of payment as “account payment” select “tax head” and click “fetch outstanding” to view the outstanding tax liability, including the principal tax, penalties, and interest per tax type. For additional assistance, we urge our taxpayers to contact URA through its toll-free lines (0800117000 and 0800217000), WhatsApp number +256772140000 or visit their local tax office. This waiver presents a golden opportunity for taxpayers to reset their tax records. Taxpayers are encouraged to settle their principal tax before June 30, 2026, to fully benefit from the waiver and avoid accumulating penalties and interest. The writer is the Assistant Commissioner Tax Education in URA