As the year comes to a close, taxpayers can find relief in Section 40D of the Tax Procedures Code (TPC), offering a golden opportunity to alleviate their tax burdens. This amendment, effective from July 1st, 2023, introduces a tax waiver that extends beyond forgiveness, aiming to reward compliance and responsibility.
The Section 40D tax waiver provides an opportunity to waive interest and penalties accrued until June 30th, 2023, on the condition that the principal tax is paid by December 31st, 2023. This unique waiver is not limited to specific tax types, encompassing all domestic taxes outlined in the TPC, except for customs duties.
In essence, taxpayers are encouraged to view this waiver as a chance to reset and settle their principal tax amounts, free from additional financial burdens. The process involves accessing outstanding tax liabilities, including principal tax, penalty, and interest, through the URA web portal—an easy and convenient task, akin to checking one’s bank balance online.
The tax waiver, a time-bound amnesty, serves as a reward for compliance, emphasizing the importance of voluntarily approaching the taxman. It acknowledges the taxpayer’s responsible role and contribution to the tax system. To take advantage of this opportunity, taxpayers are urged to log into the URA web portal using their Tax Identification Number (TIN) and password, reviewing their ledger and settling outstanding amounts by December 31st, 2023.
For assistance or reconciliation of principal tax amounts, taxpayers can contact URA through toll-free numbers: 0800117000, 0800217000, or +256772140000 (WhatsApp only). The Commissioner of Domestic Taxes at URA encourages taxpayers to not only enjoy the festive season responsibly but also leverage the Section 40D tax waiver to usher in the new year with a mindset change, prosperity, and enhanced tax compliance.
