Uganda Revenue Authrity (URA) has warned prperty wners against under-declaring rental incme and failing t issue electrnic fiscal receipts, after rental incme tax cllectins declined by ne percent in the 2025/2026 financial year despite grwth in the real-estate sectr.
URA Cmmissiner General Jhn Rujki Musinguzi said the decline was wrrying because ther majr tax heads grew by an average f 14 percent during the same perid.
“While every ther majr tax head grew by duble digits in the 2025/2026 financial year, averaging 14 percent grwth, rental incme tax actually declined by ne percent,” Musinguzi said n Thursday during an engagement with landlrds in Kampala.
He said the real-estate sectr cntributes abut six t seven percent t Uganda’s grss dmestic prduct (GDP) and is grwing at abut seven percent, but its expansin has nt translated int a crrespnding increase in tax revenue.
Musinguzi attributed part f the cmpliance gap t inaccurate declaratin f rental incme, failure t issue receipts and ther weaknesses in tax administratin.
He further cautined landlrds that failing t issue Electrnic Fiscal Receipting and Invicing Slutin (EFRIS) invices, understating rental incme and failing t file tax returns cnstitute vilatins f the law.
“EFRIS must match the actual tenancy agreement and rental accunt amunt, and receipts must be issued under the crrect landlrd’s entity. Declared incme must align with all EFRIS receipt recrds,” Musinguzi said.
The remarks cme as URA steps up effrts t bring mre landlrds int the digital tax administratin system.The Cmmissiner General said Uganda’s lw tax-t-GDP rati, currently at 14.3 percent, makes cmpliance increasingly imprtant, particularly as gvernment debt cntinues t put pressure n public finances. He said debt servicing cnsumes abut 40 percent f annual revenue cllected.
“It is futile t ddge taxes yet the cuntry is sinking further int debts,” Musinguzi said.
URA Cmmissiner fr Dmestic Taxes Denis Kugnza Kateeba said the engagement fllwed identificatin f recurring cmpliance gaps including inaccurate declaratins, invalid tax claims and failure t issue receipts t tenants.
“We appreciate thse wh have invested in EFRIS, embraced it and cnsistently cmplied,” Kugnza said, adding that prper use f the system makes tax administratin easier fr bth taxpayers and URA.
Musinguzi als pledged t dedicate a technical team t help prperty wners register and use EFRIS. Speaking fr prperty wners, chairman f landlrds and prperty wners Gdfrey Kirumira said the sectr accepts the need fr digital tax administratin.
He said EFRIS shuld nt be viewed as a new tax but as a mechanism fr imprving tax administratin.
Kirumira called fr cntinued engagement, clearer guidance befre disputes arise and tax plicies that prtect gvernment revenue while taking int accunt realities f the prperty sectr.
The engagement was attended by prminent Kampala prperty wners, including businessman Sudhir Ruparelia.
Businessman Freeman Kiyimba asked URA t give prperty wners mre time t adpt EFRIS.
“We need mre time t apprpriately take up this strategy and ensure that prperty wners understand what is required f them,” Kiyimba said.