By Sarah M. Chelangat
This festive season, I bring you great news that could offload your tax burden. It is detailed in Section 40D of the Tax Procedures Code. On July 1st 2023, the TPC underwent a significant amendment and below are the opportunities Section 40D tax waiver presents;
Currently, one can benefit from the waiver of interest and penalty outstanding as of 30th June 2023, provided they pay the principal tax by 31st December 2023. This is not just any ordinary waiver; it is a chance to start afresh.
In simpler terms; Let’s imagine you owe a friend some money and over time, the interest and penalties pile up. And that friend later requests to pay back the actual amount of money you owe by the end of year without interest. That friend is the Taxman, ready to excite and support all taxpayers pay the principal tax, interest free.
How does then the taxpayer navigate this process? Now, the process is not complicated. One can access the details of their outstanding tax liability, including principal tax, penalty, and interest, by logging unto the URA web portal account. The process here is like checking your bank balance online – easy and convenient. So far, more than UGX 273 Billion has already been waived and approximately UGX 50 Billion has been paid in principal amounts. This means people are already taking advantage of this opportunity, don’t miss out!
The tax waiver is also not limited to a specific type of tax. It covers all domestic taxes outlined in the TPC excluding customs duties. This means that whatever you owe the taxman inform of income tax, rental tax or any other domestic tax, you stand a chance to benefit.
Why then the waiver? Section 40D of the TPC is not just about forgiving liabilities; it is about rewarding compliance. By voluntarily forwarding yourself to the taxman, you are demonstrating responsibility. The waiver is also opportunity for the Taxman to appreciate your noble role as the taxpayer for compiling.
Meanwhile, the amnesty is time-bound, so get started by loging unto the URA web portal using your Tax Identification Number (TIN) and password. Once logged in, review your ledger and see the outstanding amounts. If, for any reason, you disagree with the principal tax therein, quickly get in touch with us so a reconciliation is made in time for you to take advantage of the waiver.
You can also reach out to us via our toll-free numbers: 0800117000, 0800217000 or +256772140000 (WhatsApp only). We are here to guide you, and ensure you make the most of this opportunity.
As we celebrate this festive season, I encourage you to enjoy responsibly and also take advantage of opportunities enshrined in the Section 40D tax waiver and free yourself from burden of interests and penalties. Don’t let this opportunity slip away – log in, review your outstanding amounts, and make your payment by 31st December 2023. Let’s embrace this chance and start the new year of mindset change, prosperity and tax compliance as we Develop Uganda Together.
The Author is the Commissioner Domestic Taxes in URA
