URA Mega Tax Incentive to Relieve Taxpayers of Tax burden

Taxpayers are being  encouraged to take advantage of the tax amnesty which has been described as a  golden opportunity, and clear their outstanding principal tax as soon as possible.

Following an executive decision by the Ministry of Finance In a bid to support businesses that are recovering from the economic impact of COVID-19, the Government of Uganda through Uganda Revenue Authority introduced a tax amnesty through waiver of interest and penalty on outstanding principal tax as of June 30, 2023.

Uganda Revenue Authority, in executing its mandate of tax administration, has since July 2024 been implementing the waiver of interest and penalty to taxpayers who have paid principal tax outstanding as at June 30, 2023.

The amnesty applies to domestic taxes including corporation income tax, individual income tax, rental income tax, pay as you earn (PAYE), withholding tax (WHT), value-added tax (VAT), local excise duty, lotteries and gaming taxes, and stamp duty.

The amnesty is intended to encourage tax compliance and provide relief to businesses that were affected by the pandemic.In order to benefit from the waiver, a taxpayer is required to pay their outstanding principal tax by December 31, 2024.

According to Sarah Chelangat,the Commissioner Domestic Taxes in URA the  waiver will be applied automatically upon payment confirmation.

She says where a taxpayer pays a portion of the principal tax outstanding as at June 30, 2023, by December 31, 2024, the interest and penalty relating to the principal tax paid shall be waived proportionately.

This waiver will relieve taxpayers of their tax burden and enable reinvestment of the savings to grow their businesses.

To view one's outstanding tax balance, a taxpayer may log into their Tax Identification Number (TIN) account on the URA web portal or visit the nearest Domestic Taxes office for assistance.