In a major relief for businesses grappling with post-pandemic recovery, the Ministry of Finance—through the Uganda Revenue Authority (URA)—has introduced a final waiver on accumulated interest and penalties for domestic taxpayers.
The waiver, implemented under the amended Tax Procedures Code Act, allows taxpayers to settle their outstanding principal tax arrears without paying any associated interest or penalties, as long as full payment is made by June 30, 2026.
URA Commissioner General John Musinguzi said the new measure responds to overwhelming demand from businesses and individuals who missed the previous amnesty window, which closed in January 2025.
“Many taxpayers missed the previous opportunity and have since appealed for reconsideration. This new window will give them space to recover, reduce financial pressure, and free up capital for reinvestment,” Musinguzi stated.
To benefit from the waiver, taxpayers must clear all their principal tax arrears accrued as of June 30, 2024. Those who make partial payments will still receive a proportionate waiver of penalties and interest. The amnesty applies only to domestic taxes and does not cover customs duties. Additionally, any interest that accrues between July 1, 2024 and the date of payment will also be waived.
However, eligibility requires taxpayers to first file all missing returns. Without this compliance, the waiver will not apply. Once the principal amount is cleared and the taxpayer is up to date with filings, the waiver will be automatically reflected on their TIN account.
Musinguzi stressed that this is the final opportunity for such relief, and no further extensions will be granted.
“This is about restoring trust between taxpayers and the government. We want to encourage voluntary compliance rather than relying solely on enforcement,” he said.
The URA has advised taxpayers to check their account balances through the online URA portal or by visiting the nearest tax office.
The government hopes this final amnesty will ease financial stress still lingering from the COVID-19 pandemic and encourage more businesses to regularize their tax obligations.
