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TAX TERROR! URA’s shocking new tax rules send landlords into a frenzy

by Julian Ninsiima | Reporter
25/03/2025
in Business, FEATURES, News, SOCIETY
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"URA cracks down on rental income with new tax regulations, threatening landlords with hefty fines and penalties for non-compliance.
URA cracks down on rental income with new tax regulations, threatening landlords with hefty fines and penalties for non-compliance.

KAMPALA, Uganda – The Uganda Revenue Authority (URA) has introduced new tax rules requiring all landlords to declare their rental income and register for taxation.

The move has sparked widespread outrage among landlords, who claim the new regulations are draconian and will cripple their businesses.

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“This is a tax tsunami!” exclaimed one irate landlord, who wished to remain anonymous. “We can’t afford to pay these exorbitant taxes. It’s like the URA is trying to strangle us!”

At the heart of the controversy is the URA’s insistence that landlords declare all rental income, regardless of whether it’s generated from properties within Uganda or abroad. Failure to comply will result in hefty fines and penalties.

Isaac Aijuka, Acting Supervisor of Tax Education Outreach for Southwestern Uganda, warned landlords that the URA would not tolerate any non-compliance. “We have a voluntary disclosure program in place, but make no mistake, we will come after those who refuse to declare their rental income,” he vowed.

The URA’s new tax rules have also sparked confusion among landlords, many of whom are unsure about how to declare their rental income or what taxes they are liable for.

Samuel Tayebwa, Mbarara City’s Principal Tax Officer, attempted to clarify the situation, explaining that rental income tax was separate from property tax. “Rental income tax is charged by the URA on rent earned from letting a property, while property tax is levied by the city council on buildings within the city,” he explained.

But for many landlords, the explanation has come too little, too late. They claim the URA’s sudden tax crackdown has left them feeling bewildered, betrayed, and more than a little frightened.

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Tags: landlordsproperty ownersrental incometax crackdowntax regulationsUganda NewUganda Revenue AuthorityURa

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