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Tax Alert : 6 tax bills assented to by the Ugandan President become law
Earlier this year, Uganda's Minister of Finance Planning and Economic Development tabled before Parliament six tax bills to amend the current laws relating to income tax, value-added tax, excise duties, tax procedures, and taxation of lotteries and gaming, as well as to implement the Convention on Mutual Administrative Assistance.
The bills were to become law if passed by the Parliament and assented to by the Ugandan President.
The President of the Republic of Uganda assented to the Tax Procedures Code (Amendment) Bill on August 17, 2023.
Waiver of interest on voluntary payment of principal tax
To benefit, taxpayers must settle their principal outstanding tax liabilities by December 31, 2023. The waiver covers interest and penalties in proportion to the principal tax paid
The bill proposes the following in respect of voluntary disclosure and payment of principal tax:
- The Commissioner shall waive the taxpayer's liability for interest and penalty if the taxpayer voluntarily pays, by 31 December 2023, the principal tax outstanding as of 30 June 2023.
- The Commissioner shall waive the taxpayer's liability for interest and penalty on a pro-rata basis if the taxpayer voluntarily pays, by 31 December 2023, part of the principal tax outstanding as of 30 June 2023.
Implications of failure to comply with a notice to obtain information or evidence
The bill proposes that where a taxpayer fails to provide the information requested under Section 42 of the Tax Procedures Code Act, the taxpayer shall not be allowed to provide that information at objection to a tax decision or during alternative dispute resolution procedure proceedings.
Ensure timely reconciliation via the URA portal, as payments made after the deadline won't qualify for this relief.
The 6 tax bills
- Income Tax (Amendment) Bill, 2023 (pdf)
- Value Added Tax (Amendment) Bill, 2023 (pdf)
- Excise Duty (Amendment) Bill, 2023 (pdf)
- Tax Procedures Code (Amendment) Bill, 2023 (pdf)
- The Convention on Mutual Administrative Assistance in Tax Matters (Implementation) Bill, 2023 (pdf)
- The Lotteries and Gaming (Amendment) Bill, 2023 (pdf)
For more information, please email us at uganda@abcexpat.com