Kampala, Uganda — The Uganda Revenue Authority (URA) has announced a temporary penalty waiver scheme aimed at giving taxpayers a chance to regularize their tax status on undeclared or falsely declared goods without facing additional fines and penalties.
According to URA, the initiative is part of ongoing efforts to improve tax compliance and encourage voluntary disclosure among importers and traders who may have previously made errors or omissions in their customs declarations.
Under the waiver arrangement, eligible taxpayers are required to pay the full principal tax due immediately. However, all penalties and fines arising from undeclared or misdeclared goods will be waived, provided the goods in question are declared and cleared by Customs on or before June 30, 2026.
The tax authority emphasized that the waiver applies strictly to consignments processed and cleared through Customs, with all taxes fully paid by the deadline. Applicants are also required to submit a signed Request to Settle Offence (Form C35) alongside a Compounding Agreement as part of the formal process.
URA further noted that the waiver is conditional on full compliance going forward, warning that any future violations will be dealt with under existing tax laws.
However, the authority clarified that the scheme does not apply to outright smuggled goods, stressing that it is only intended for undeclared or falsely declared imports that were processed through customs systems.
The move is expected to offer relief to businesses while strengthening compliance and boosting revenue collection efficiency in the long term.
