UGANDA, Soroti/Moroto | Real Muloodi News | Landlords across Eastern Uganda are pledging stronger compliance to rental tax obligations following targeted tax education campaigns by the Uganda Revenue Authority (URA). This initiative forms part of a broader effort to boost domestic revenue and foster a culture of voluntary compliance among property owners.
Led by URA’s Tax Education Division in partnership with local Domestic Tax (DT) stations, the sensitisation campaigns held last month in Soroti and Moroto aimed to demystify rental income taxation and directly address the concerns of landlords, many of whom were engaging formally with URA for the first time.
In Soroti, property owner Caroline Eyapu emphasised the tangible benefits of tax compliance, highlighting how her contributions translate into improved infrastructure and public services.
“When I drive from Kampala to Soroti Town on tarmacked roads, I see security lights on those roads and a safe space both day and night for business. I say, ‘Yes, that is my money,’ and I feel I should contribute more,” Eyapu stated.
She also urged fellow landlords to view URA not as an adversary but as a steward of national development.
“Although many of us see URA as an enemy, who else would collect these funds and channel them towards the public good?” she added.
In Moroto, the message was echoed by Micah Galya, URA’s Ag. Assistant Commissioner for Tax Education, who provided clarity on rental tax obligations. He explained that individuals are subject to a 12% tax on gross rental income, while companies can deduct up to 50% of allowable expenses and are taxed at 30% on the net.
He also stressed the importance of proper recordkeeping:
“URA does not tax losses if they are properly documented and verified,” Galya noted, encouraging transparency and accountability in property rental businesses.
The message resonated with Rev. Sr. Maria Goretti Kemirembe, Financial Advisor of the Moroto Catholic Diocese, who committed the institution to full compliance and pledged to cascade the training to others within the diocese.
These engagements are part of URA’s ongoing domestic revenue mobilisation strategy. In FY2023/24, domestic taxes contributed UGX 19.2 trillion, representing approximately 82% of URA’s total revenue collections. With rental income identified as a key growth area, such outreach is crucial for broadening the tax base and reducing dependency on foreign aid.
Official figures show that rental tax collections surged by 56%, from UGX 54.5 billion in FY2021/22 to UGX 85.3 billion in FY2022/23. This impressive growth has been significantly driven by the rollout of the Rental Tax Compliance System (rTCS), launched in April 2022.
The Role of the Rental Tax Compliance System (rTCS)
The Rental Tax Compliance System (rTCS) is a digital innovation to enhance transparency, automate compliance tracking, and increase tax efficiency in the rental sector. The system identifies taxable properties and their rental values, verifies occupancy through utility records, and cross-references property ownership with taxpayer records and tax history—allowing URA to fairly and accurately assess rental obligations.
By leveraging satellite imagery, and integrated data systems, rTCS ensures that property data—including location, ownership, rental status, and income—is systematically captured and updated. This significantly reduces underreporting and ensures equitable taxation across the board.
As Uganda targets UGX 25 trillion in domestic collections to fund its ambitious UGX 72 trillion national budget in FY2024/25, the rTCS stands out as a cornerstone of URA’s modernisation agenda. Its successful implementation in Greater Kampala and rollout in regional centers underscores its scalability and national importance.
URA continues to call on all property owners to be part of a fair, transparent, and digitally enabled tax environment.
“Paying your rental tax is not just a duty—it’s a direct investment in Uganda’s future,” said Galya.
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