The Uganda Revenue Authority (URA) has granted amnesties and extensions for filing tax returns and penalties in the face of the impact of coronavirus on the economy.
The ‘tax man’, in a March 24th, 2020 statement, granted a two-month extension to taxpayers who were supposed to file their Corporation Tax returns by 31st March, 2020 meaning such group will be required to file their returns by May 31st, 2020.
“All penalties related to late submission of these returns shall be canceled if the returns are filed on or before 31st May 2020,” URA said.
Returns for Value Added Tax (VAT), Pay As You Earn (PAYE), Local Excise Duty, Withholding Tax and all other taxes under the Lotteries and Gaming Act for March 2020, which were supposed to be filed by April 15, 2020, can now be filed by April 30, 2020.
In addition, for those who failed to file their February returns by 15th March 2020, late payment penalties shall be waived, provided they file their February returns by 31st March 2020.
Nevertheless, URA insists that there are no waivers or write-offs and the outstanding taxes must be paid in full in accordance with the provisions of the law.
URA added that taxpayers, who had ongoing arrangements with URA and were due to make installments in the months of March and April, have an option to defer and reschedule these payments to May this year.
This provision however only applies to taxpayers whose businesses have been affected by Government Directives on mitigating COVID-19 and are thus unable to meet their obligations during this period. These include sectors like airlines, transport companies, and hotels who have been affected by massive travel restrictions both globally and locally.
URA also encourages taxpayers to use more of their online services.
“Taxpayers are encouraged to submit any physical documents using our electronic channels. For payments: URA advises the public to use the following payment options; Online banking/ EFT/ RTGS, agency banking, VISA/MasterCard for Stanbic Bank, ABSA and UBA, PayWay services across the country and Mobile money (MTN and Airtel),” the statement reads.