The Uganda Revenue Authority (URA) has issued an important reminder to taxpayers with outstanding domestic tax arrears, urging them to take advantage of a tax amnesty that could save them millions of shillings. The amnesty gives taxpayers a chance to clear their principal tax liabilities and receive a full waiver of the interest and penalties that have accumulated over the years. However, this opportunity will only be available until June 30, 2026.The tax amnesty was introduced through amendments to the Tax Procedures Code Act as part of the government’s efforts to support businesses and individuals facing financial challenges.
The initiative is designed to ease the burden of tax debt, encourage voluntary compliance, and help taxpayers recover financially while contributing to national development. Under the arrangement, taxpayers who fully pay the principal tax that was due by June 30, 2024, before the June 30, 2026 deadline will automatically qualify for a 100 percent waiver of all related interest and penalties.According to URA Commissioner General John Rujoki Musinguzi, the new waiver was introduced after many taxpayers were unable to benefit from previous tax amnesty programs due to cash-flow difficulties.
He explained that many businesses and individuals wanted to clear their tax obligations but lacked the financial capacity to do so within the earlier timelines. To address this challenge, the government has now provided a full financial year, from July 2025 to June 2026, giving taxpayers enough time to plan and settle their liabilities.The tax relief does not only benefit those who can pay their entire principal tax at once. URA has clarified that taxpayers who make partial payments toward their outstanding principal tax by June 30, 2026, will also enjoy a proportional waiver of the interest and penalties linked to the amount paid.
This flexibility is expected to help more taxpayers participate in the program and gradually reduce their tax burden.The amnesty covers a wide range of domestic taxes, including income tax, Value Added Tax (VAT), local excise duty, rental tax, Pay As You Earn (PAYE), and gaming tax. However, URA has noted that customs duties and certain penalties imposed as deterrents for non-compliance with tax administration systems are not covered under the waiver.One of the most attractive aspects of the program is its simplicity. Taxpayers do not need to submit any special applications or paperwork to benefit from the waiver. Once the qualifying principal tax amount is paid, the system automatically removes the corresponding interest and penalties.
URA has encouraged taxpayers to check their outstanding balances through the tax portal using their Tax Identification Number (TIN), visit the nearest URA office, or contact the authority through its helplines for guidance.As the end of the financial year approaches, URA is intensifying its compliance campaigns and encouraging taxpayers to act before it is too late. The authority is reminding businesses and individuals not only to clear outstanding tax obligations but also to file any pending tax returns.
With less than a month remaining before the deadline, officials believe this is a valuable opportunity for taxpayers to regularize their tax affairs and avoid future financial penalties.URA has warned that once the waiver period expires on June 30, 2026, any unpaid principal tax will once again attract the full interest and penalties prescribed by law. Taxpayers who fail to take advantage of the amnesty may find themselves facing a much heavier financial burden in the future. For many businesses and individuals, the current tax waiver represents a rare opportunity to start afresh, settle old tax debts, and move forward with greater financial stability.
