KAMPALA — The Uganda Revenue Authority (URA) has reminded taxpayers with outstanding domestic tax arrears that they have until June 30, 2026, to clear their principal tax liabilities and qualify for a waiver of accumulated interest and penalties.
The tax amnesty, introduced under amendments to the Tax Procedures Code Act, is intended to ease the burden on businesses and individuals struggling with tax arrears while encouraging voluntary tax compliance and supporting economic recovery.
According to URA, taxpayers who fully settle their outstanding principal tax liabilities that were due by June 30, 2024, before the June 30, 2026, deadline will automatically receive a 100 percent waiver of all related interest and penalties.
URA Commissioner General John Rujoki Musinguzi said the waiver was introduced after many taxpayers failed to benefit from previous tax amnesties because of cash-flow challenges.
“The new waiver is another opportunity the government has given to taxpayers who have tax arrears to settle their liabilities without worrying about the burden of interest and penalties,” Musinguzi said. “Most taxpayers had missed out on the previous two waivers due to cash constraints. We have now granted one full financial year, from July 2025 to June 2026, to enable taxpayers to plan better.”
URA noted that taxpayers who are unable to clear the entire principal tax liability at once can still benefit from proportional relief.
“A taxpayer who pays only a portion of the principal tax outstanding as at 30th June 2024 by 30th June 2026 shall benefit from a waiver of the portion of interest and penalty that relates to the principal tax paid,” the authority said in a public notice.
The waiver applies to a 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 clarified that customs duties and certain deterrent penalties, including some penalties related to non-compliance with tax administration systems, are excluded from the amnesty.
Taxpayers do not need to submit a formal application to benefit from the waiver, as it is automatically applied once the qualifying principal tax is paid. URA has encouraged taxpayers to verify their outstanding balances through the tax portal using their Tax Identification Number (TIN), visit URA offices, or seek assistance through the authority’s helplines.
The revenue authority is intensifying compliance campaigns ahead of the end of the financial year as it seeks to meet its revenue collection target.
“With less than 30 days left to close the financial year, taxpayers should clear outstanding obligations, file pending returns, and take advantage of tax waivers before the June 30 deadline,” Musinguzi said recently, noting that tax compliance remains critical to financing public services and national development.
URA has warned that once the waiver period expires on June 30, 2026, all unpaid principal tax obligations will once again attract the full interest and penalties provided for under the law.