The Uganda Revenue Authority (URA) has urged Kampala landlords and property owners to fully embrace the Electronic Fiscal Receipting and Invoicing Solution (EFRIS) as the tax body moves to address growing compliance gaps in the rental property sector.The call was made on Thursday, September 17, 2026, during a high-level engagement between URA leadership and some of Kampala’s prominent landlords and property representatives at Mestil Hotel in Kampala.
The meeting focused on the reasons behind the stagnation of rental income tax collections and the need for better compliance.Commissioner of the Domestic Tax Department, Denis Kugonza Kateeba, said URA had identified several challenges in the sector, including inaccurate declaration of rental income, invalid tax claims and failure by some landlords to issue the required receipts to their clients.Kugonza commended landlords who have already adopted EFRIS and consistently used the system, saying proper use of the electronic platform makes tax administration easier for both taxpayers and URA.
He stressed that issuing EFRIS receipts is a legal requirement and not a choice.He also warned landlords that the information captured in EFRIS must reflect the actual tenancy agreements and rental payments. Receipts, he said, should be issued under the correct landlord or business entity, while declared rental income should match the records generated through EFRIS.Representing property owners, Chairman of Landlords and Property Owners, Ambassador Godfrey Kirumira, acknowledged that EFRIS is not a new tax but a digital system intended to strengthen tax administration.
He said landlords were ready to voluntarily participate in the transition instead of waiting for enforcement measures.URA Commissioner General John R. Musinguzi said the real estate sector plays an important role in Uganda’s economy, supporting employment and creating a market for locally manufactured products such as cement and iron bars, while also contributing significantly to the financial sector.According to Musinguzi, real estate currently contributes about six to seven percent of Uganda’s Gross Domestic Product and is growing at about seven percent.
However, he noted that this growth has not resulted in a corresponding increase in rental income tax collections. While other major tax heads recorded an average growth of 14 percent in the 2025/2026 financial year, rental income tax declined by one percent.Musinguzi said EFRIS can help close the gap by improving the accuracy of rental income records and reducing opportunities for underdeclaration. He warned that failure to issue EFRIS invoices, underdeclaring rental income and failing to file tax returns are violations of the law.
He also pointed to Uganda’s wider fiscal challenges, noting that the country’s tax-to-GDP ratio stands at about 14.3 percent, while debt servicing consumes about 40 percent of the annual revenue collected. He argued that increasing tax compliance is therefore important as the country continues to deal with rising debt obligations.To ease the transition, Musinguzi pledged to dedicate a URA technical team to support landlords who are yet to join EFRIS and help them address challenges they may face while adopting the system.
