By Akinyi Winiefred
Ibrahim Bbossa, the Assistant Commissioner Public and Corporate Affairs at the Uganda Revenue Authority has called on landlords and tenants to comply with their tax obligations and declare their rental income accurately and timely.
Speaking at the recently concluded NBS Housing Baraza, Bbossa decried the low number of taxpayers on the rental income register which he said is far from the actual number of those earning rent.
“By the end of the last financial year, the rental income tax register had 161,412 taxpayers. Although this is a significant number, it is far from the actual number of Ugandans earning rental income,” said Bbossa.
He encouraged proprietors in the housing sector to register for taxes, noting that the URA has put in place measures to support them.
“The Voluntary disclosure program can help landlords who have under-declared or over-declared their rental income to rectify their mistakes and pay the correct amount of tax. It allows taxpayers who have made errors or omissions in their tax declarations to come forward and correct them without facing penalties or interest,” said Bbossa as he tipped the housing proprietors on URA’s taxpayer support initiatives.
He also encouraged landlords with outstanding liabilities to make use of the waiver on penalties and interest.
“URA has a waiver of penalties and interest for taxpayers who have outstanding tax arrears as of June 30, 2023, and were unable to pay them by the due date. URA will waive the penalties and interest if the taxpayers can pay the principal amount by December 31, 2023,” he explained.
Bbossa’s call comes at a time when URA is looking to collect over Ugx 29 trillion this financial year. Rental income tax has been flagged as one of the low-performing tax heads with high levels of non-compliance.
URA has however, instituted measures to improve collections in this sector, including partnering with Ripplenami, a global technology company to use its platform to locate and map the properties of landlords who have not declared their rental income.
Ripplenami uses satellite imagery, geospatial data, and artificial intelligence to provide real-time and accurate information on the location, size, and value of properties.
According to Bbossa, this helps URA identify and reach out to non-compliant landlords and encourage them to register and pay their rental income tax.
Bbossa reiterated URA’s commitment to supporting the growth and development of the housing sector by ensuring a fair, efficient, and effective taxation of rental income.
“I appeal to all of you to join us in this noble cause by complying with your tax obligations and paying your fair share of taxes,” Bbossa.
