Uganda's URA presses Kampala landlords on e-invoicing as rental income tax slips 1%

The Uganda Revenue Authority (URA) has urged Kampala City landlords to embrace the Electronic Fiscal Receipting and Invoicing Solution (EFRIS), at a high-level engagement held at Mestil Hotel that drew some of the city's most prominent property owners and their representatives, ChimpReports reported.

Commissioner for the Domestic Tax Department Denis Kugonza Kateeba said the engagement followed the discovery of recurring compliance gaps in the sector, resulting in inaccurate declaration of rental income, invalid tax claims and non-compliance in issuing receipts to clients. "We appreciate those who have invested in EFRIS, embraced it and consistently complied," Kugonza said, adding that issuing an EFRIS receipt is a legal obligation and not an optional practice.

Speaking for property owners, the chairman of landlords and property owners, Ambassador Godfrey Kirumira, acknowledged that EFRIS is not a tax but an electronic mechanism for strengthening tax administration. He said the business community would voluntarily participate in the transition rather than wait for enforcement to compel compliance.

URA Commissioner General John R. Musinguzi said real estate now contributes about six to seven percent of Uganda's gross domestic product and is among the fastest-growing sectors in the economy, expanding by seven percent. That growth, however, has not translated into proportionate tax revenue: while every other major tax head grew by double digits in the 2025/2026 financial year, averaging 14 percent growth, rental income tax declined by one percent, he said.

Musinguzi said Uganda's tax-to-GDP ratio sits at 14.3 percent while the country's debt portfolio consumes 40 percent of annual revenue collected, and warned that failing to issue EFRIS invoices, understating rental income and skipping tax returns all amount to breaking the law. He pledged to dedicate a technical team to support landlords in adopting the system.