As the real estate sector in Uganda continues to expand, URA is stepping up efforts to ensure the growing property market translates into stronger rental tax collections, following a significant decline in rental income tax during the 2025/2026 financial year.
URA Commissioner General John Musinguzi said the decline, which he stated at 1%, is largely linked to persistent compliance gaps among landlords, including understatement of rental income, failure to file returns and failure to issue electronic fiscal receipts.
Musinguzi made the remarks in Kampala on Thursday at Mestil Hotel, while engaging landlords and property owners on ways of improving compliance through the Electronic Fiscal Receipting and Invoicing Solution (EFRIS).
He said real estate has become one of Uganda’s fastest-growing sectors, contributing a percentage of six to seven of Gross Domestic Product (GDP) and expanding at roughly 7% while supporting employment, construction, manufacturing and financial services.
“While every other major tax heads grew by double digits in the 2025/2026 financial year averaging 14 percent growth, rental income tax actually declined by one percent,” Musinguzi said.
Commissioner Domestic Taxes Denis Kugonza Kateeba said URA had identified inaccurate rental declarations, invalid tax claims and failure to issue receipts as some of the major compliance weaknesses.
He urged landlords to ensure their EFRIS records correspond with tenancy agreements, rental accounts and income declared to URA.
Rather than relying entirely on enforcement, Musinguzi said URA would provide technical assistance to landlords struggling with the transition, including deploying a dedicated team to help them join EFRIS and resolve challenges.
He also linked compliance to Uganda’s wider fiscal pressures, noting that the country’s tax-to-GDP ratio stands at 14.3% while debt servicing consumes about 40 percent of annual revenue.
“It is futile to dodge taxes yet the country is sinking further into debts,” Musinguzi told the landlords.
The engagement gave city landlords an opportunity to raise concerns directly with URA leadership as the tax collecting body seeks to improve transparency and strengthen rental tax collections.
