URA Penalty Schedule 2026
| Offence | Penalty |
|---|---|
| Late PAYE return filing | UGX 200,000 per month of default |
| Late PAYE payment | 2% per month interest on outstanding |
| Late VAT return filing | UGX 200,000 per month of default |
| Underreporting income (negligence) | 30% of underpaid tax |
| Underreporting income (fraud) | 60% of underpaid tax plus prosecution |
| Failure to maintain records | UGX 2,000,000 |
The 5 Most Common URA Compliance Failures
- Missing the 15th of the month — PAYE, NSSF, and VAT all due on 15th. One day late triggers penalties
- Not including all taxable income — housing and transport allowances must be in PAYE
- Not registering new employees from day one
- Paying suppliers without deducting withholding tax — especially consultancy payments
- Not filing annual returns — required even with zero tax liability
How to Regularise Your Tax Position
- Calculate all outstanding taxes, interest, and penalties honestly
- Approach URA Taxpayer Services and proactively disclose outstanding liabilities
- Request a payment plan — URA does negotiate instalment agreements
- File all outstanding returns even for periods you cannot pay immediately
- Set a calendar reminder for 14th of each month to prepare all returns
💬 Worried about outstanding tax obligations in Uganda?
Basket Advisory helps businesses regularise URA tax positions and maintain 100% compliance. Want to know more? Talk to our consultant.
📧 solutions@basketadvisory.com
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