With Uganda’s General Election scheduled for January 15, 2026, the Uganda Revenue Authority (URA) has issued a public appeal to taxpayers, urging them to submit and pay key taxes earlier than usual. The early filing request covers taxes including Value Added Tax (VAT), Pay As You Earn (PAYE), Withholding Tax (WHT), Local Excise Duty (LED), and Gaming and Pool Betting Tax (GPBT). The recommended compliance deadline is January 12, 2026, ahead of the statutory due date of January 15.
Why URA Is Requesting Early Tax Payments
URA’s early filing and payment request aims to mitigate risks during the election period. These include potential disruptions to government operations, unpredictable internet connectivity, and changes in taxpayer behavior that could lead to compliance issues. The goal is to ensure that tax payments are made on time, without interference from election-related challenges.
URA’s Self-Assessment System
Under Uganda’s self-assessment tax system, taxpayers are responsible for registering, filing, and paying their taxes on time. The Authority typically steps in at the end of the cycle to verify returns and enforce compliance. To encourage early filing, URA sometimes offers incentives, such as voluntary disclosures, which allow taxpayers to correct errors without facing penalties or interest.
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Legal Deadline vs Administrative Guidance
Tax expert Trevor Bwanika, Associate Director at PwC Uganda, pointed out that while URA encourages early compliance, the statutory deadline remains unchanged. By law, taxes must be paid by the 15th of the following month. In cases where the deadline falls on a public holiday, like January 15, the law extends the deadline to the next working day.
What Happens if Taxpayers Miss the Deadline
Missing the deadline will result in penalties. For instance, late VAT payments incur a 20% penalty on the tax due. Failing to provide information requested by URA can lead to fixed penalties, such as Shs 20,000,000 or Shs 15,000,000 for transfer pricing cases. These penalties are treated as a type of tax, enhancing URA’s enforcement powers.
Debate Over URA’s Approach
Some tax professionals have expressed concerns about URA’s early filing request. Bwanika views it as administrative advice, not a legal change. Sarah Chelangat, former URA Commissioner for Domestic Taxes, sees the appeal as a way to raise awareness and prevent inadvertent penalties during a potentially disruptive period.
Others argue that moving the deadline earlier during the year-end period puts unnecessary pressure on businesses. Justin Osillo, a partner at TGS Osillo, suggests extending the statutory deadline would be a fairer approach for firms still ramping up after the holiday season.
URA has broad discretionary powers under the Tax Procedures Code Act, allowing it to manage tax collection flexibly and respond to circumstances like elections without changing the law.
