UGANDA, Kampala | Real Muloodi News | The Uganda Revenue Authority (URA) is urging stakeholders in the housing sector to prioritise tax compliance by meticulously maintaining their rental tax records.
Godson Muhwezi, URA’s Compliance Rental Officer, emphasises the critical role of accurate record-keeping to avoid conflicts with tax authorities during annual audits.
Muhwezi underscores the importance of record-keeping in monitoring tax-deductible expenses: “It is crucial for sector players in the housing industry to keep track of their rental tax records. This ensures accurate monitoring of expenses, revenue, and deductions throughout the fiscal year, preventing conflicts with tax authorities during annual audits.”
The recent introduction of the Voluntary Disclosure Program aims to significantly boost rental income tax collections. The Voluntary Disclosure Program encourages non-compliant landlords to utilise Section 66 to disclose tax liabilities and be forgiven expensive interest and penalties they would otherwise incur.
This is particularly relevant now that URA is armed with the Rental Tax Compliance System (rTCS) and is actively identifying landlords who are non compliant. Those landlords who are identified as a result of rTCS will be subject to pay interest and penalties. Estimates suggest rTCS has the potential to increase revenue from $30 million to around $200 million annually.
URA remains committed to training taxpayers within the housing sector to enhance their understanding and compliance with complex regulations.
Muhwezi emphasises URA’s active engagement in providing training sessions: “Uganda Revenue Authority is actively engaged in training taxpayers within the housing sector, aiming to enhance their understanding and compliance with complex regulations in their jurisdiction.”
In light of the Voluntary Disclosure Program, non-compliant landlords are encouraged to utilise Section 66, allowing them to disclose tax liabilities without incurring interest and penalties.
Muhwezi urges non-compliant landlords to leverage the Voluntary Disclosure provision: “We implore non-compliant landlords to utilise the Voluntary Disclosure provision under Section 66. This allows them to pay the principal tax liability without incurring interest and penalty.”
With URA targeting a revenue collection of USh29 trillion this year, rental tax compliance is set to be a focal point in the coming months.
The housing sector is called upon to actively participate in ensuring a transparent and accountable system aligning with URA’s revenue collection objectives.
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