KAMPALA, Uganda — The Uganda Revenue Authority is urging landlords nationwide to voluntarily disclose their rental properties and register for rental income tax to boost compliance.
Isaac Aijuka, acting supervisor of tax education outreach for southwestern Uganda, emphasized the importance of voluntary compliance during a meeting with landlords in Mbarara and Lyantonde.
“URA has a voluntary disclosure program that allows you to declare your rental properties,” Aijuka said, stressing that landlords must report all rooms generating rental income, whether in Uganda or abroad.
Failure to declare rental properties and register for rental income tax can result in substantial fines and legal consequences, Aijuka warned. Rental income tax applies to immovable property, and landlords must self-declare their expected rental earnings for the financial year.
To facilitate understanding of the tax process, Aijuka provided examples of how URA calculates rental income tax. He also emphasized the importance of accurate records of rental payments when filing provisional rental income tax returns.
Samuel Tayebwa, Mbarara City’s principal tax officer, clarified the distinction between rental income tax and property tax. “Rental income tax is charged by URA on rent earned from letting a property, while property tax is levied by the city council on buildings within the city,” Tayebwa explained.
The URA’s call is part of a broader effort to strengthen tax collection and ensure all income-generating activities, including rental income, are properly taxed.