In a bid to improve compliance with rental income tax and enhance understanding of the taxes that apply to the real estate sector, the Uganda Revenue Authority has commenced engagements with landlords at parish level.

The activity, which is a partnership with the Kampala Development Forum, is mainly targeting mid-level landlords whose compliance is still low.

While meeting landlords in Buziga parish, Makindye division, recently, Andrew Bukenya, one of URA’s tax experts, explained the concept of self-assessment, highlighting the importance of voluntary compliance.

He trained the landlords on how to file returns while emphasizing the differences between rental income tax and property tax.

Bukenya encouraged those with outstanding liabilities to make use of the waiver on penalties and interest.

“URA has a waiver of penalties and interest for taxpayers who have outstanding tax arrears as of June 30, 2023, and were unable to pay them by the due date. URA will waive the penalties and interest if the taxpayers can pay the principal amount by December 31, 2024,” he explained.

During the meeting, landlords asked URA to simplify the return filing process citing complexities which force them to hire experts, who are costly.

In the same light, Jjumba Nasser, the President of the Kampala Development Forum, suggested that payment receipts should be customized for each building to prevent duplication and forgery, which are common with generic receipts.

He advised landlords to maintain accurate records and receipts for the rent they receive. stating that this is crucial for verifying their earnings and determining the taxes owed.

The next engagements will cover areas of Salaama, Kansanga, and Kisungu.

By Irene Kabakama