UGANDA, Kampala | Real Muloodi News | The Uganda Revenue Authority (URA) has reaffirmed its commitment to improving tax compliance, particularly in the area of rental income tax, which has been a standout performer in the country’s fiscal landscape. This commitment comes on the heels of the Ministry of Finance, Planning, and Economic Development (MoFPED) releasing its economic performance report for December 2023, which highlighted continued record-breaking rental income tax revenues.
The MoFPED report, unveiled on January 17, 2024, showed that while overall domestic revenue collections fell short of the target by 11.4%, the rental income tax exceeded its monthly target by Shs 10.61 billion. This surge in rental tax revenue, totaling over Shs 101 billion for the quarter, marks a quarterly increase of Shs 30.77 billion compared to the same period last year. The success is largely attributed to the effective implementation of the URA’s Rental Tax Compliance System since April 2022.
In a bid to sustain and further enhance these impressive gains, the URA has issued a comprehensive tax compliance notice, set to take effect from Monday, January 22, 2024. The notice emphasises the enforcement of compliance with EFRIS (Electronic Fiscal Receipting and Invoicing System), DTS (Digital Tax Stamps), and rental tax obligations across Uganda.
The URA’s enforcement strategy includes registering eligible taxpayers for applicable tax types, issuing assessments and penalties to non-compliant taxpayers, and taking necessary actions against those who fail to adhere to domestic tax laws. This robust approach follows a prolonged period of tax education and sensitisation through various channels and support services.
Taxpayers are advised to register for VAT, EFRIS, DTS, and rental tax as soon as possible if eligible. For VAT-registered entities, issuing e-invoices for all sales transactions through EFRIS platforms is mandatory. Manufacturers must affix and activate correct digital tax stamps to gazetted products, while distributors, wholesalers, and retailers are responsible for ensuring that only products with digital tax stamps are sold at their premises. The URA also warns against selling or activating incorrect stamps, tampering with digital tax stamps or EFRIS devices, as these actions will lead to prosecution and penalties.
The notice further emphasises the importance of declaring and paying the correct rental tax for landlords, signaling the URA’s focus on continuing the momentum gained in rental tax revenue. Landlords are encouraged to comply with their rental tax obligations to avoid penalties and legal consequences.
With the Rental Income tax’s remarkable performance in the recent quarter, the URA’s focused enforcement measures are expected to bolster the country’s fiscal health and support sustainable economic growth.
For further inquiries or assistance, taxpayers are encouraged to contact the URA through their toll-free numbers, WhatsApp, email, or by visiting the nearest URA office.
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