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Through an amendment to the Tax Procedures Act 2014, taxpayers can benefit from a waiver of interest and penalties on overdue taxes as of June 30, 2023, provided the principal amount is cleared by December 31.
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In a bid to support taxpayers and encourage compliance, the government has introduced another opportunity for individuals and businesses to settle outstanding tax liabilities. Through an amendment to the Tax Procedures Act 2014, taxpayers can benefit from a waiver of interest and penalties on overdue taxes as of June 30, 2023, provided the principal amount is cleared by December 31.
This extension follows a similar initiative in 2023 and aims to provide relief for those who missed the earlier chance. With a straightforward process for applying the waiver via the URA portal, and the option to pay in installments, this initiative is designed to ease the financial burden while fostering a culture of compliance.
The waiver is the second in months after the Taxman’s generosity to traders mid-year when it suspended the penalties imposed on taxpayers for not implementing the Electronic Fiscal Receipting and Invoicing Solution, popularly known by its acronym Efris.
Mr Robert Kalumba, the acting commissioner for public and corporate affairs at the Uganda Revenue Authority spoke to the Nile Post about the waiver, sharing most of the FAQs for the public.
What is the waiver all about?
The government of Uganda has yet given taxpayers another opportunity to clear their outstanding taxes without the pressure of accumulated interest and penalties. Section 47A of the Tax Procedures Act 2014 has been added to grant a waiver of interest and penalty outstanding as at 30/06/2023 where the taxpayer pays the principal tax by 31/12/2024.
This has come as an extension to support taxpayers who missed a chance for the waiver that was given in 2023. The taxpayers’ statements have been adjusted to incorporate the waiver and takes into consideration payments made from 01/01/2024 to 31/12/2024 towards the liability as at 30/06/2023.
What is the criteria?
The criteria to benefit from the waiver is simply through making payment of the outstanding principal tax as at June 30 2023 by 31st December 2024.
Who qualifies, who does not?
Every taxpayer with outstanding principal tax under domestic taxes as at 30th June 2023. i.e. (Income tax, VAT, PAYE, WHT, Gaming and Lotteries tax, Local excise duty). Taxpayer who have outstanding taxes in customs are not covered by this waiver
How does one go about getting the waiver? (How easy is it)
Simply log into your URA account on the URA portal (www.ura.go.ug) by using your Tax Identification Number (TIN) and password. Once logged in,
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- Under e-services, select payment and click on ‘generate payment slip’
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- Under payment type, select DT as a payment type
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- Under period selection, select period before July 2021 and
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- Under details of tax type, select the tax head.
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- Check pay fully and click ok. The pay fully option will be ticked and the principal tax will be fetched.
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- The amount payable picks only the principal amount
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- Proceed to register the payment based on the principal tax you wish to pay.
If you select periods after July 2021, click on account payment,
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- Under details of tax type, select the tax head.
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- Click fetch outstanding.
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- Click on show period-wise breakup to view the breakdown per period
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- For periods that qualify for the waiver, only the principal tax will be picked while
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- For periods after 30th June 2023, the interest and penalty if any is payable.
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- Proceed to register the payment based on the liability you wish to pay.
Can one pay in installments? What does this imply?
If you pay a portion of your outstanding principal tax by 31st December 2024, the interest and penalty related to the portion you paid will be waived proportionately. For example, if you pay 50% of your principal tax, then 50% of the corresponding interest and penalties will be waived.
6Is there a deadline?
Yes, you must pay your outstanding principal tax by December 31, 2024, to qualify for the waiver of interest and penalties. Don’t let this opportunity pass by—act now and enjoy a fresh start in the new year.
