The Uganda Revenue Authority (URA) has given owners of commercial buildings a three-month ultimatum to regularise their rental income tax affairs after identifying recurring compliance gaps among landlords in Kampala.
URA officials issued the directive during a face-to-face engagement with Kampala landlords on September 17th, 2026, at Mestil Hotel, where the authority sought to address declining compliance in the rental sector.
The URA Commissioner Domestic Taxes, Denis Kugonza said the engagement was aimed at repeating the mandate for transparent operations and complete record-keeping across the entire rental business chain.
Kugonza also told landlords they can claim certain expenses if the costs are directly related to their rental business, are backed by a valid EFRIS invoice, and the person claiming is the actual buyer. He warned that making unsupported claims could be considered tax fraud under the Tax Procedures Code Act.
The Assistant Commissioner Domestic Taxes Compliance, Garry Kizito said the law allows taxpayers three years to review their self-declarations. However, where fraud is established, URA can review assessments for any period.
The URA Commissioner General, John R. Musinguzi said rental income tax compliance had declined despite overall tax collections recording double-digit growth.
“Last FY all taxes grew by double digits with an average growth of about 14%, but the rental income tax head declined by 1%,” he said.
Musinguzi said the meeting was intended to have a conversation with landlords and address the decline rather than put blame, penalise or victimise taxpayers.
Assistant Commissioner Client Services Christine Mirembe urged business owners to incorporate tax planning into their businesses from the outset, noting that taxes are often treated as an afterthought.
Ambassador Godfrey Kirumira called on URA to strengthen its engagement with landlords by establishing a dedicated relationship with industry stakeholders who understand the realities of the sector and can provide clear guidance before compliance mistakes develop into disputes.
