URA Extends Opportunity to Clear Tax Arrears Without Penalties

The Uganda Revenue Authority (URA) has announced a final opportunity for taxpayers to clear outstanding tax arrears without paying accumulated interest and penalties. The move aims to ease the burden on taxpayers while improving voluntary compliance.

URA Announces Tax Waiver Deadline

In a public notice issued on February 10, 2026, URA said taxpayers with unpaid principal taxes as of June 30, 2024, qualify for an interest and penalty waiver. However, they must settle the principal amount by June 30, 2026.

According to the authority, the waiver applies strictly to interest and penalties linked to qualifying principal taxes.

“The Tax Procedures Code Act provides for the waiver of interest and penalty outstanding as at 30th June 2024, where a taxpayer pays the outstanding principal tax by 30th June 2026,” URA stated.

Partial Payments Also Qualify

Importantly, URA clarified that taxpayers do not need to pay the full amount at once to benefit. Even partial payments qualify for relief.

“A taxpayer who pays only a portion of the principal tax shall benefit from a waiver of the interest and penalty relating to the principal tax paid,” the authority explained.

As a result, taxpayers who make progressive payments can still reduce their total tax burden.

Missed Deadline Will Attract Full Penalties

Despite the relief, URA warned taxpayers against delaying action. Failure to meet the deadline will reverse the benefit entirely.

“Failure to pay the principal tax outstanding as at 30th June 2024 by 30th June 2026 will render the accrued interest and penalty payable,” URA cautioned.

Therefore, taxpayers must act within the specified timeframe to avoid additional costs.

Scope and Limitations of the Waiver

The waiver applies only to interest and penalties linked to principal taxes due on or before June 30, 2024. In addition, it covers interest accrued between July 1, 2024, and June 30, 2026, provided the principal tax is paid.

However, URA clarified that customs taxes and duties do not qualify for this relief.

How Taxpayers Can Check Their Status

URA is urging eligible taxpayers to log into their TIN accounts through the URA online portal to confirm outstanding balances. Alternatively, taxpayers can visit the nearest URA office for support.

Moreover, the authority will notify affected taxpayers through SMS and email to ensure awareness.

“The waiver of interest and penalty will lapse in less than five months from now,” URA emphasized, urging taxpayers to take advantage of the limited-time offer.

Supporting Compliance and Revenue Growth

This initiative forms part of URA’s broader strategy to support taxpayers while strengthening revenue collection. Ultimately, the move aligns with URA’s theme, “Developing Uganda Together,” by promoting cooperation, compliance, and shared national growth.