KAMPALA, Uganda — Tax experts are clarifying that a recent request by the Uganda Revenue Authority for citizens to file their taxes early is merely advisory, noting that the statutory deadline remains unchanged despite the upcoming election.
The URA issued a public notice Jan. 6 encouraging taxpayers to file and pay monthly returns for VAT, PAYE and other levies by Jan. 12. The move is intended to avoid potential disruptions, such as internet outages or holiday closures, surrounding the Jan. 15 general election.
However, international tax practitioners say the tax body’s request does not override existing legislation.
“The law remains the law,” said Trevor Bwanika, an associate director at PwC Uganda. “The commissioner has an obligation to advise and guide, but that does not override the law which mandates taxpayers to pay their taxes by the 15th every month.”
Bwanika added that taxpayers who choose to file on Jan. 14 would not be legally subject to penalties, as they are still within the timeframe established by the Tax Procedures Code Act.
Sarah Chelangat, a partner at Ernst & Young and former URA commissioner, described the notice as an administrative tool rather than a legal mandate. She noted the URA is likely trying to encourage compliance to prevent a last-minute rush or system congestion.
The legal deadline of Jan. 15 coincides with election day, which is a gazetted public holiday. According to the Interpretation Act, when a statutory deadline falls on a public holiday, the period is typically extended to the next working day.
Some analysts have criticized the URA for not using its discretionary powers to officially extend the deadline forward instead of asking for early payments. Justin Osillo, a partner at TGS Osillo, argued that pushing the date forward places unfair pressure on businesses currently facing a cash flow squeeze at the start of the year.
While the URA maintains that early filing is the safest way to avoid interest and penal taxes, experts remind the public that the “carrot” approach of the recent notice is a suggestion for convenience, not a change in the tax code.
