Who is a landlord?

This is a person who lets out immovable property (land and or buildings) to another person (the tenant) for a payment. A person may take the form of: an individual, a company, a trust, a partnership, government or an institution.

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Landlords in Uganda are required to be registered with;

  • Uganda Registration Services Bureau (URSB) for Company registration
  • Uganda Revenue Authority (URA) for taxes
  • Local council authority e.g. KCCA, municipal council, for property rates etc.

 

For individual

  • National ID or any other two of the following valid identification documents;  Passport, Driving permit, Voter’s card, Village ID, Employment ID, Refugee ID, recent Bank statement, Work permit, financial card, Visa, NSSF card etc.
  • Certificate of registration (incase you are in business)
  • Statement of particulars and partnership deeds (incase of a partnership)

For non-individual

  • Company Form 20
  • Certificate of incorporation

Click here  for details on requirements for registration

 

 

As a taxpayer, you’re entitled to rights. However, there are obligations that you must fulfill.

Click here  for your rights as a taxpayer.

Click here  for your obligations as a taxpayer.

 

 Rental Income tax

Click here to for information on rental income tax

Value Added Tax (VAT)

VAT is a consumption tax charged at a rate of 18% on all supplies made by taxable persons i.e. persons registered or required to register for VAT purposes. The threshold for VAT registration is an annual turnover of over 150 million, or 37.5 million in the first 3 consecutive months.

Click here to register for VAT

The annual VAT registration threshold is UGX 150m. Therefore, landlords who own and earn rental income of UGX 150m or more in a given year from commercial property are required to register for VAT. After registration, the landlords are required to charge their tenants VAT at a rate of 18% (of rental income) and remit it to URA.

Please note:

All VAT registered taxpayers are obliged to register for EFRIS and issue e-invoices

Click here for information on how to register for EFRIS

 Withholding tax

 Withholding tax (WHT) is income tax that is withheld at source by one person (withholding agent) upon making payment to another person (payee).

 

 

Withholding tax at 6% is deducted on payments for rent exceeding UGX 1 million by a designated withholding agent.

Please note

The tax withheld is credited/ reduced on the tax payable in the final income tax return.

Click here for information on Withholding tax.

 

Yes. Capital gains tax is charged on the profits made from the sale of a business asset that is not a depreciable asset, such as land and buildings. If a landlord decides to sell off his/her rentable property and realizes a profit, Capital gains tax is payable at a rate of 30%.

 

These returns are filed like any other Income tax returns

Click here for information on how to file your returns.

 

After filing a return, you’re required to pay taxes due using available payment platforms e.g. banks, mobile money, VISA, EFT, RTGS,  Mastercard, USSD code (*285#) etc.

Please note: the due date for payment of tax is the same as that of return filing.

 

Yes. There are incentives available for landlords- both local and foreign and they include:

Tax incentives under Domestic Taxes

VAT ACT

Beneficiary

Incentives

Period of Incentive

Conditions for the Tax incentive

VAT Registered taxpayers

VAT registered persons claim all the VAT incurred.

Indefinite

Turnover of UGX 150m in any 12-month period for first time registration, ability to keep proper books of accounts and making taxable supplies.

For more information, visit the nearest URA office for assistance or call the toll-free line 0800117000/0800217000 or WhatsApp: 077214000

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