2025 tax amendment Acts: changes effective 1 July 2025
In brief
Uganda's 2025 tax amendment Acts took effect on 1 July 2025 — new income-tax exemptions and Tax Procedures Code identification reforms.
What changed
The President enacted a set of tax amendment Acts on 30 June 2025, effective 1 July 2025. The Income Tax (Amendment) Act, 2025 expanded exemptions, including a three-year income-tax exemption for a business established by a citizen after 1 July 2025 with investment capital not exceeding UGX 500 million. The Tax Procedures Code (Amendment) Act, 2025 introduced new taxpayer-identification criteria (the national identification number for individuals and a URSB central register for non-individual entities) and extended the waiver of interest and penalties for taxpayers who voluntarily pay outstanding principal tax.
What it affects
- Taxpayers, new businesses and their advisers — the exemption and identification changes affect registration and filing.
- Re-flag for review: the URA objection, Tax Appeals Tribunal, tax clearance and rental-income-tax notes, and the tax checklists, to reflect the 2025 amendments.
- The interest-and-penalty waiver is time-limited — confirm the current voluntary-payment deadline with URA before relying on it.
Effective date & transition
Effective date: 1 July 2025 (the amendment Acts were enacted on 30 June 2025).
The income-tax exemption applies to qualifying businesses established after 1 July 2025. The interest/penalty waiver applies to principal tax outstanding as at 30 June 2024 if paid by the stated deadline — confirm the deadline.
Primary sources
Citations
- Income Tax (Amendment) Act, 2025; Tax Procedures Code (Amendment) Act, 2025 — enacted 30 June 2025, effective 1 July 2025.
- Income Tax Act, Cap. 338; Tax Procedures Code Act, Cap. 343 (the principal Acts amended).