The Uganda Revenue Authority’s (URA) announced a blanket amnesty for taxpayers with arrears a move that some say signals a strategic shift toward fostering voluntary compliance and easing financial burdens on businesses still recovering from the COVID-19 pandemic.
The URA’s move comes as Uganda grapples with uneven revenue collection. According to official figures, domestic tax revenue grew from Shs 18.2 trillion in 2022/23 to Shs 19.8 trillion in 2023/24 but fell short of the Shs 21.5 trillion target for 2024/25, reaching only Shs 20.4 trillion.
“This is a final opportunity for taxpayers to clear their debts without the burden of penalties,” said URA Commissioner General John Musinguzi.
“Many missed the January 2025 amnesty deadline and appealed for relief. This window allows businesses to stabilize and redirect funds toward growth.”
To qualify, taxpayers must settle all principal arrears accrued by June 30, 2024, with partial payments earning proportional waivers on interest and penalties. Notably, interest accrued after July 1, 2024, will also be forgiven if payments are made by the deadline.
Taxpayers must first file all outstanding tax returns, after which the URA will verify compliance and automatically reflect the relief in their Taxpayer Identification Number (TIN) accounts.
The amnesty targets businesses, particularly small and medium-sized enterprises (SMEs), which continue to face high borrowing costs and limited credit access. However, the requirement to pay the principal amount may still strain cash-strapped firms.
“We’re shifting from punitive enforcement to collaboration,” Musinguzi noted, underscoring the URA’s intent to rebuild trust with the business community.
Taxpayers are encouraged to check their balances online or at URA offices.
