Landlords from the Eastern Uganda have pledged to meet their end-of-year rental tax obligations following a series of tax education sessions conducted by the Uganda Revenue Authority (URA).

The trainings, spearheaded by URA’s Tax Education Division in collaboration with Domestic Tax (DT) stations, were designed to improve understanding of rental tax obligations and promote long-term compliance among property owners.

In Soroti, Caroline Eyapu Ekobu, a landlady, acknowledged the importance of tax compliance in nation-building.

“When I drive from Kampala to Soroti Town on tarmacked roads, I see security lights on the same roads, and a safe space both night and day for business. I say yes, that is my money, and I feel I should contribute more,” she boasted.

She urged fellow landlords to shift perceptions of URA from adversarial to supportive.

“Although most of us take URA as our enemies, who else would do the collective job of collecting these funds together for a common good,” Eyapu added.

Despite appreciating the clarity on rental and withholding taxes, Eyapu called for additional guidance on the Electronic Fiscal Receipting and Invoicing Solution (EFRIS), noting that many taxpayers remain confused by the system.

In Moroto, similar sentiments were echoed as the Ag. Assistant Commissioner for Tax Education, Micah Gaalya, led an informative session explaining rental income taxation.

He clarified that individuals are required to pay 12% tax on their rental income, while companies benefit from a 50% expense deduction and are taxed 30% on the net rental income.

Gaalya emphasized the importance of maintaining accurate records to verify any reported losses, stressing that URA does not charge tax on losses if they are properly documented and verified.

The revelation impacted Rev Sr. Maria Goretti Kemirembe, the Financial Advisor of Moroto Catholic Diocese, who committed to fulfilling the diocese’s rental tax obligations and educating her team. She also called for more targeted training on EFRIS and withholding tax to bolster compliance efforts.

By Joshua Niyonshima