URA Urges Landlords to Use E-receipts for Rent Payments

John Musinguzi URA Commissioner General - URA Urges Landlords to Use E-receipts for Rent Payments
Landlords Advised to Implement E-receipts for Accurate Tax Reporting
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The Uganda Revenue Authority (URA) has directed commercial building owners in the city to use electronic receipt (e-receipt) payment systems for rent. The URA Commissioner General, John Musinguzi Rujoki, stressed the importance of improving revenue collection and eliminating loopholes during a meeting with commercial building owners in Kampala.

Musinguzi mentioned that despite increased collections from the sector, a significant amount of revenue remains uncollected, leading to losses. Recent tax investigations revealed a staggering Shillings 50 billion lost in this sector from just seven audited buildings.

To ensure accurate income declarations, Musinguzi emphasized the need for commercial building landlords to issue e-receipts. The implementation of e-receipts, initially introduced as a tax administration measure to combat tax leakage, began with supermarkets and large retail outlets. It involves integrating URA’s digital systems with landlords’ systems, ensuring rental payments are received through bank accounts and receipts are issued accordingly.

During the meeting, a city landlord, Moses Kalungi, expressed his willingness to issue e-receipts but raised concerns about URA’s aggressive tax collection methods. He suggested that URA officials should patiently evaluate landlords’ books of account before determining tax obligations to avoid overpayment.

Other topics discussed included the importance of awareness campaigns among landlords, efforts to boost compliance within the sector, and encouraging landlords with outstanding tax payments to take advantage of the interest waiver opportunity, which expires on December 31, 2023, as part of the voluntary disclosure arrangement.

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