The Uganda Revenue Authority (URA) has once again extended a critical lifeline to taxpayers with outstanding domestic tax arrears, following the introduction of a new tax waiver under Section 47B of the Tax Procedures Code Act. This waiver provides a rare and valuable opportunity for taxpayers to clear their tax liabilities without the burden of accumulated interest and penalties, provided they act within the stipulated timeframe.
Speaking on the rationale behind the waiver, URA Commissioner General, Mr. John Musinguzi Rujoki, emphasized that the government’s approach is anchored in partnership rather than punishment. He noted that URA understands the economic challenges many individuals and businesses have faced in recent years and is committed to supporting recovery while strengthening voluntary tax compliance.
“This waiver is about giving taxpayers a genuine chance to reset and move forward. We are saying: clear your principal tax, and government will take away the burden of penalties and interest. It is a win-win for taxpayers and the country,” Mr. Musinguzi said.
What the New Waiver Means for Taxpayers
Under Section 47B, the waiver applies to outstanding domestic tax liabilities as at 30th June 2024. Taxpayers who fully settle their principal tax by 30th June 2026 will benefit from a 100% waiver of the related interest and penalties. Where a taxpayer makes partial payment of the principal tax within the waiver period, the interest and penalties will be waived on a pro-rata basis, corresponding to the amount of principal tax paid.
This generous framework allows taxpayers a full financial year—from July 2025 to June 2026—to plan and meet their obligations, a move URA says addresses challenges observed during previous waiver windows.
According to Mr. Musinguzi, many taxpayers missed earlier waivers due to cash flow constraints.
“We listened to taxpayers. By providing a longer window, we are enabling better planning, easing pressure on businesses, and encouraging responsible compliance,” he explained.
Who Qualifies and What Taxes Are Covered?
The waiver applies to all taxpayers with outstanding principal tax under domestic taxes as at 30th June 2024. Covered taxes include Income Tax, Value Added Tax (VAT), Local Excise Duty, Rental Tax, Gaming Tax, among others. However, customs taxes and duties are excluded from this waiver.
URA has clarified that certain deterrent penalties are also not covered. These include penalties related to digital tax stamps, EFRIS non-compliance, failure to register, failure to provide information, and court-imposed penalties and interest. Such penalties will continue to accrue until fully paid, even if the principal tax is settled.
Simple, Automatic Process
One of the most taxpayer-friendly aspects of this waiver is that no application is required. Taxpayers only need to make payments toward their qualifying outstanding principal tax. Once payment is made, the system will automatically waive the corresponding interest and penalties.
URA has also invested heavily in system improvements to ensure a smooth and transparent process. The enhanced systems now support real-time data integration and validation, minimizing the anomalies experienced in previous years.
“We have strengthened our systems to ensure accuracy, automation, and trust. Taxpayers should have confidence that once they pay their principal tax, the waiver will be applied seamlessly,” Mr. Musinguzi noted.
How to Check Your Tax Position
Taxpayers are encouraged to log into the URA online portal (www.ura.go.ug) using their TIN and password to review their tax statements. The portal provides a detailed breakdown of principal tax, penalties, and interest per tax type, and allows taxpayers to generate payment slips conveniently.
For those who encounter discrepancies, URA has established a Ledger Reconciliation Section dedicated to resolving tax ledger issues promptly, ensuring taxpayers pay only what is correct and due.
Why This Waiver Matters for the Economy
Beyond individual relief, URA believes the waiver will have a broader positive impact on the economy. By easing the burden of tax arrears, businesses can redirect resources toward growth, investment, and job creation.
Mr. Musinguzi stressed that sustainable revenue collection depends on trust and cooperation.
“When taxpayers are supported to comply voluntarily, the entire economy benefits. This waiver is part of our commitment to developing Uganda together,” he said.
Deadline and Call to Action
The waiver expires on 30th June 2026. Taxpayers who fail to settle their principal tax by this date will lose the benefit and be required to pay the full tax, including all accrued interest and penalties.
URA is urging taxpayers not to wait until the last minute. Early payment reduces further accumulation of interest and ensures full benefit from the waiver.
For support and clarification, taxpayers can contact URA through toll-free lines 0800 117000 / 0800 217000, WhatsApp +256 772 140000, visit touchpoint.ura.go.ug, or their nearest tax office.
As URA continues to position itself as a facilitator of growth and compliance, this waiver stands as a clear signal: government is ready to work with taxpayers who are willing to take responsibility and move forward.
URA Management
Developing Uganda Together
