Eastern Uganda landlords pledge rental tax compliance

A growing number of landlords in Eastern Uganda are pledging to meet their rental tax obligations following targeted tax education campaigns spearheaded by the Uganda Revenue Authority (URA). The shift reflects increasing awareness among property owners of their civic duty to contribute to national development—and a changing perception of the tax body itself.

URA, through its Tax Education Division and Domestic Taxes Department, has in recent months intensified public engagement in districts such as Soroti and Moroto. The goal: demystify rental tax, promote voluntary compliance, and improve use of digital tax systems like the Electronic Fiscal Receipting and Invoicing Solution (EFRIS).

“That Is My Money Working”

In Soroti, a vocal endorsement came from Caroline Eyapu Ekobu, a prominent landlady who publicly committed to fulfilling her end-of-year rental tax obligations.

“When I drive from Kampala to Soroti Town on well-maintained tarmac roads, lit by security lights, I see a safe, functioning space for business day and night. I say yes, that is my money working,” she said, visibly proud of her contribution to the tax basket.

Eyapu encouraged fellow landlords to move away from viewing URA as an adversary, and instead, recognize its role in mobilizing collective resources for national good.

“Although most of us take URA as our enemy, who else would do the collective job of bringing in funds to build schools, roads, hospitals, and street lights? If not us, then who?” she asked.

Her remarks highlight a growing sense of civic responsibility among some property owners—an encouraging sign in a sector that has often been characterized by under-declaration and tax evasion.

Understanding the Tax Breakdown

The URA has been especially focused on simplifying complex tax categories like rental income and withholding tax. These two have historically seen low compliance rates due to lack of awareness and misunderstandings around calculation and filing processes.

In a training held in Moroto, Micah Galya, the Acting Assistant Commissioner for Tax Education, offered clarity.

He explained that individuals earning income from rented properties are expected to pay 12% rental tax on their gross rental income. On the other hand, companies are taxed differently: they are allowed to deduct up to 50% of their expenses, and pay 30% tax on the net rental income.

“These calculations may seem complicated, but they are based on fairness,” Galya said. “We only charge tax on actual income earned. If a landlord makes a loss, and that loss is properly recorded and documented, then no tax is charged.”

He emphasized the importance of keeping accurate financial records, especially for landlords who manage multiple properties or have seasonal occupancy trends.

Faith Institutions Join the Compliance Drive

Among those in attendance at the Moroto training was Rev. Sr. Maria Goretti Kemirembe, the Financial Advisor of the Moroto Catholic Diocese. The session was an eye-opener for her and her team, who manage several church-owned rental properties.

“We now understand our obligations better,” Sr. Kemirembe said. “As a religious institution, we must lead by example and fulfill our rental tax responsibilities in accordance with the law.”

She also called on URA to offer more targeted training on EFRIS and withholding tax, noting that technical aspects of these systems still present challenges for many institutions and individuals in the region.

Digital Gaps and the EFRIS Hurdle

While the landlords appreciated clarity on tax obligations, many raised concerns about the Electronic Fiscal Receipting and Invoicing Solution (EFRIS), URA’s digital tool designed to improve transparency and automate tax documentation.

Although the system is a core part of URA’s digital transformation agenda, there is a widespread perception—particularly among property owners in upcountry districts—that EFRIS is too complicated or poorly suited for landlords who collect rent in cash, or who lack formal accounting systems.

Eyapu echoed these sentiments, saying: “Many of us have heard of EFRIS but don’t fully understand how to use it. We need more handholding from URA, especially for those of us who are not tech-savvy.”

In response, URA officials assured landlords that more tailored sessions would be organized to ease the adoption of EFRIS and other digital platforms. They also urged landlords to seek guidance from local URA stations when in doubt.

Beyond Tax: Building a Culture of Voluntary Compliance

The shift toward voluntary tax compliance among landlords in Eastern Uganda is not only timely but crucial. Rental income tax contributes significantly to Uganda’s domestic revenue, and improving compliance in this sector has been a priority for URA.

In previous years, the tax body has struggled to bring landlords into the formal tax net. A combination of underreporting, cash-based transactions, lack of tenant records, and weak enforcement mechanisms made rental income one of the most difficult taxes to collect effectively.

But through education campaigns, taxpayer engagement, and digital innovation, URA is gradually closing that gap.

“We believe in building partnerships with taxpayers, not policing them,” said Galya. “When people understand why they are taxed and how their money is used, they are more willing to comply.”

A Shared Responsibility

As 2025 draws to a close, landlords across the country will be filing their end-of-year tax returns. In places like Soroti and Moroto, the message is clear: property owners are waking up to the power of their contribution.

For Eyapu, the motivation is personal, patriotic, and practical.

“If my taxes light up a street, make the road smoother, or build a classroom, then I’m proud to be part of it,” she says. “That’s the Uganda I want to live in—and pay for.”