In recognition of the current situation regarding the impact of COVID-19 on the business community and Uganda Revenue Authority (URA) services, it is essential that we all adhere to the guidelines issued by President Museveni and the Ministry of Health to prevent the spread of the virus.
To ensure the safety of taxpayers and staff, URA has decided to make changes to the way they offer services. Henceforth, the following measures of a tax administration nature have been instituted to support taxpayers in meeting their obligations:
Taxpayers whose accounting date is in September and are unable to file Corporation Tax returns by March 31, 2020 have been granted an extension to file returns. The new due date for filing has been extended by a period of two months to May, 2020. All penalties related to late submission of these returns shall be remitted if the returns are filed on or before 31st May, 2020.
Taxpayers whose returns for March, 2020 are due by April 15, 2020 and are unable to file are granted an extension to file. The new due date for filing is April 30, 2020. This is in relation to Value Added Tax (VAT), Pay As You Earn (PAYE), Local Excise Duty, Withholding Tax and taxes under the Lotteries and Gaming Act.
Penalties for late filing of tax returns for February, 2020 that were due on March 15, 2020 shall be remitted if the returns are filed on or before March 31, 2020. This is in relation to the Value Added Tax (VAT), Pay As You Earn (PAYE), Local Excise Duty, Withholding Tax and taxes under the Lotteries and Gaming Act.
Payment of taxes under Instalment arrangements
Taxpayers who executed Memoranda of Understanding (MOU) and who have payments due in the months of March and April, 2020 will have the option to defer and reschedule these payments.
The terms of the MOU will accordingly be restructured for the payments to be resumed in May 2020. This provision will apply to taxpayers whose businesses have been affected by government directives on COVID-19 and who are unable to meet their obligations during the period.
URA says that “Taxpayers should however note that this is not a waiver or write off, the outstanding taxes will still be paid in full in accordance with the provisions of the law.”
A Taxpayer who makes any voluntary disclosure during the months of March and April, 2020 and pays the principal tax therein, shall have their penalty and interest remitted in accordance with the law.
All customs border stations shall remain open to facilitate movement of cargo subject to the Customs laws and guidelines.
All Customs warehouses will remain functional to allow clearance of cargo subject to the Customs Guidelines.
URA has encouraged taxpayers to use the online platforms to access their services, as they remain calm and adhere to all guidelines from the Ministry of Health in preventing further spread of COVID-19.