Real Estate Agents

WHO IS A REAL ESTATE AGENT?

This is a person who represents buyers or sellers in the sale and purchase of buildings and land and is licensed by the ministry of lands, housing and urban development. Real estate agents also connect landlords to prospective tenants and vice versa.

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All real estate agents 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 a trading license

 Please note:

Upon registration, real estate agents are required to comply with the   requirements of statutory bodies like;

  • Uganda Investment Authority (UIA)
  • Ministry of lands, housing and urban development.
  • National Environment Management Authority (NEMA)

 

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.

Corporation tax 

This is Income tax charged on profits of a company and charged on a companies’ taxable income.  The income tax rate applicable to companies is 30%, 

Pay As You Earn (PAYE)

Any real estate agent/ agency with workers/employees earning a monthly salary more than 235,000 per month is required to obtain a TIN, and the employer (Company) has a duty to register for Pay As You Earn (PAYE), in order to withhold from each employee who earns a monthly salary in excess of 235,000/= and remits it to URA.

Click here for the PAYE rates

Withholding tax

Withholding tax (WHT) is income tax that is withheld at source by one person (Designated withholding agent) upon making payment to another person (payee). The rate applicable to goods and services is 6% and should be withheld once the transaction amount exceeds 1,000,000/= and later remitted to URA.

With the exception of Professional fees, that do not have any threshold, i.e. withholding of 6% happens, irrespective of the transaction value.

Please note: The tax withheld is credited/ reduced on the tax payable in the Payee’s final income tax return, once filed.

Click here for information on Withholding tax. 

Is withholding tax considered on payments for real estate agent services?

A resident person who pays management or professional fees to a resident real estate agent is required to withhold tax at a rate of 6% of the gross amount of the payment.

 

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 the resultant tax using any of the available payment platforms e.g. banks, mobile money, EFT, RTGS, VISA, Mastercard, USSD code (*285#) etc.

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

Click here to register a payment

Yes. There are incentives available for real estate agents- both local and foreign and they include:

Tax incentives under Domestic Taxes

 

EXCISE DUTY

 

Beneficiary

Incentives

Period of Incentive

Conditions for the Tax Incentive

 

Developer of an industrial park/free

zone

Exemption of income derived from renting out or leasing facilities established in an industrial park or free zone.

10 years

Must invest a minimum

of USD 50m for foreign investors or USD 10m for EAC citizens, Incentive takes

effect from the date of commencement of construction. Also applies to an existing

investor making an additional investment of the same value.

Collective Investment Schemes to the extent of distribution.

Income tax exemption for Collective Investment Schemes

Indefinite

Must be licensed to operate as a collective investment scheme. Participants in the scheme should not have day to day control over the

management of the property. Participants contributions and ultimate income/ profits must be pooled Property must be managed as a whole by the operator of the scheme

 

Private employers of persons with disabilities (PWDs)

Deduction of 2% Income tax for employers that employ PWDs

Indefinite

5% of employees must be PWDs

 

Compliant taxpayers

6% WHT exemption on payment for goods and services and professional fees

12 months renewable

Where the Commissioner is satisfied that the taxpayer has regularly

complied with the obligations under the tax laws

 

All taxpayers

100% deduction of Scientific research expenditure

Indefinite

A person who incurs expenditure for scientific research

 

All taxpayers

Initial allowance and Depreciation allowance: Initial Allowance – capital deduction of 50% of qualifying Plant

& machinery and 20% on Industrial building placed in the radius

of 50Km outside the boundaries of Kampala. Person who places depreciable assets in service e.g. computers, automobiles, specialized trucks, tractors, plant and machinery used in farming, manufacturing or mining operations, trailers and trailer mounted containers; and Industrial building deduction of 5% on cost of construction

straight line method for

20 years.

Indefinite

All taxpayers with depreciable assets

 

All taxpayers

Carry forward losses: Assessed loss is carried forward as a deduction in the following year of income.

Duration of the loss

All taxpayers

 

Investor established in a country with which Uganda has a DTA

Double Taxation Agreements (DTA): Investors from countries with active DTA’s with Uganda i.e. United Kingdom, Denmark, Norway, South Africa, India, Italy, Netherlands and Mauritius Withholding tax rates applicable to dividends, interests, management fees and royalties are 10% except UK at 15%

Duration of the DTA

Beneficial owner of investment as defined in the Income Tax Act established with economic substance in a country with which Uganda has a DTA.

 

VAT ACT

 

Beneficiary

Incentives

Period of Incentive

Conditions for the Tax incentive

 

Developer of an industrial park

or free zone

No VAT on any payment for feasibility studies, design construction services, construction materials and earth moving equipment and machinery.

Duration of the

development

The investment must be

at least USD 50m. The development must be for an industrial park or free zone.

 

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.

 

STAMP DUTY ACT

 

Beneficiary

Incentives

Period of Incentive

Tax incentive

 

Developer of an industrial park/free zone

No Stamp duty on debentures, lease of land, Increase of share capital, transfer of land.

Duration of development

Must invest a minimum of USD 50m and incentive takes effect from the date of commencement of construction.

 

Loan applicants

NIL stamp duty on an agreement relating to the deposit of title-deeds, pawn pledge-of the total value.

Indefinite

Agreement relating to the deposit of title-deeds, pawn pledge-of the total value.

 

Loan applicants

NIL stamp duty on security bond or mortgage deed.

Indefinite

Security bond or mortgage deed executed by way of security for the due execution of an office, or to account

for money or other property received by virtue of security bond or mortgage deed executed by a surety to secure a loan or credit facility-of entry value.

 

                 

 

 

In case you cannot register online, visit the nearest URA office for assistance or call the toll-free line 0800117000/0800217000 or WhatsApp: 077214000

 

 

 

 

 

 

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