The Government of Uganda, through the Uganda Revenue Authority (URA), has introduced the longest tax waiver ever granted. Under Section 47B of the Tax Procedures Code Act (TPC), this waiver eliminates interest and penalties on the payment of principal tax. The goal is to ease the tax burden, encourage voluntary compliance, and support business growth across the country.
This marks the third tax waiver in just three years, highlighting the government’s recognition of the economic challenges faced by businesses and individuals. It gives taxpayers a chance to regularise their tax obligations without the pressure of accumulated penalties and interest. Previous waivers in 2020 and 2024 provided similar relief, targeting businesses affected by the COVID-19 pandemic and overdue payments as of June 2023. The current waiver, however, is the most extensive, offering a full year—from 1st July 2025 to 30th June 2026—for taxpayers to settle their principal tax and enjoy complete relief from interest and penalties. Partial payments also benefit from a pro-rata reduction in fines.
The waiver applies to both individuals and non-individuals, covering domestic taxes administered under the Tax Procedure Code Act. These include Corporation Income Tax, Individual Income Tax, Rental Income Tax, Value Added Tax (VAT), Local Excise Duty (LED), PAYE, Withholding Tax, Non-Tax Revenue, and Stamp Duty. Customs duties, however, are excluded.
Applying for the waiver is simple. URA’s system is fully automated: once a Payment Registration Number (PRN) is generated and payment toward the principal is made, the taxpayer’s account is immediately updated. The initiative protects business sustainability and encourages those who have previously struggled with compliance to settle obligations without heavy penalties. Taxpayers are urged to act promptly, as missing the deadline means losing a valuable opportunity to strengthen their business.
For clarity and to ensure full benefits, URA advises taxpayers to review their tax ledgers and resolve any discrepancies before making payments. This is a chance for businesses to breathe easier, grow stronger, and participate fully in Uganda’s economic development.
