Uganda Revenue Authority targets rental tax gaps amid real estate boom

The Uganda Revenue Authority (URA) is intensifying efforts to address tax compliance gaps within the country’s expanding real estate sector. Despite the industry contributing between 6% and 7% to Uganda’s Gross Domestic Product (GDP) and growing at approximately 7%, rental income tax collections saw a 1% decline during the 2025/2026 financial year.

URA Commissioner General John Musinguzi identified several causes for this decline, including the understatement of rental income, failure to file returns, and failure to issue electronic fiscal receipts. To combat this, the authority is promoting the use of the Electronic Fiscal Receipting and Invoicing Solution (EFRIS). The URA plans to provide technical assistance and dedicated teams to help landlords transition to the digital system.

During a stakeholder engagement in Kampala, property investor Godfrey Kirumira advocated for continuous dialogue between the URA and landlords. Kirumira emphasized that regular communication and clear guidance would help property owners meet their obligations and avoid disputes, noting that the real estate sector is a vital driver of employment and economic growth.