• Latest
  • Trending
  • All
  • News
  • Business
  • Politics
  • Lifestyle
Govt to get shs700bn from rental income tax every year- Experts

Govt to get shs700bn from rental income tax every year- Experts

May 20, 2021
State drags feet as Minister Nandutu moves to halt Karamoja iron sheet trial over vague law

Minister Nandutu loses bid to halt iron sheets trial

May 29, 2023

Museveni finally assents to Anti-Homosexuality Bill

May 29, 2023
Nigeria to swear in new president today

Nigeria to swear in new president today

May 29, 2023
Why who is the President of Turkey matters to everyone

Why who is the President of Turkey matters to everyone

May 29, 2023
India walks into new parliament, finally abandoning colonial era building

India walks into new parliament, finally abandoning colonial era building

May 29, 2023
Turkish President Recep Tayyip Erdogan

Erdogan wins closely fought presidential election in Turkey

May 29, 2023
Pan Africanists shed light on significance of Africa day

Pan Africanists shed light on significance of Africa day

May 29, 2023
Girl angry over confiscated iPhone, sets fire to school dormitory, 19 killed

Girl angry over confiscated iPhone, sets fire to school dormitory, 19 killed

May 28, 2023
I&M bank’s commitment to golf shines through Serena 63 Golf series

I&M bank’s commitment to golf shines through Serena 63 Golf series

May 28, 2023
Accountants, Christians urged to emulate Saint Anthanasius Bazzekuketta

Accountants, Christians urged to emulate Saint Anthanasius Bazzekuketta

May 28, 2023
Logo
  • News
    • Politics
    • Business
    • 2021 Elections Watch
      • The Election Podcast
    • Exclusive
    • Investigations
  • Education
  • Security
    • Cyber Security
  • Health
    • Coronavirus outbreak
  • Opinions
    • Columns
      • Parting Shot
      • Two Sides of a Coin
      • Bazanye’s Quick Shots
      • Mable Twegumye Zake’s #BitsOfMe&You
      • But this Year!
      • What Did I Miss?
  • Lifestyle
    • Hatmahz Kitchen
    • Food Hub
    • Let’s Talk About Sex
    • Entertainment
    • Tour & Travel
    • Love Therapist
    • Homes
  • Global
    • Africa
    • Asia
    • Middle East
    • Europe
    • The Americas
  • East Africa
    • Kenya
    • Rwanda
    • Tanzania
    • South Sudan
    • DR Congo
    • Ethiopia
    • Sudan
  • Technology
  • Ask the Mechanic
  • Special Reports
    • Kabaka Mutebi’s 25th Coronation Series
    • Focus on Somalia
    • Sino-Africa
    • Uganda at 56
    • Anti-Corruption Fight
    • Age Limit Map
    • Tuve Ku Kaveera
  • Sports
    • Place-It
    • StarTimes Uganda Premier League
    • Bundesliga
    • World Cup
  • Jobs
No Result
View All Result
Logo
No Result
View All Result
Home News Featured

Govt to get shs700bn from rental income tax every year- Experts

Experts have said government is capable of recouping $200million(approximately shs713billion) from rental income tax per year.

Kenneth Kazibwe by Kenneth Kazibwe
May 20, 2021
in Featured, News
Reading Time: 3 mins read
0
Govt to get shs700bn from rental income tax every year- Experts

Shops for rent in Kampala.*Daily Monitor photo.)

Experts have said government is capable of recouping $200million(approximately shs713billion) from rental income tax per year.

Parliament recently amended the Income Tax Amendment Bill to introduce a levy obliging owners of rental premises to pay 25 per cent of their rental income as tax to government.

Last year, government through the Ministry of Finance contracted RippleNami, an American technology company to develop the Rental Tax Compliance System that enables government integrate data to match real estate properties to their individual or corporate owners.

The system will enable government identify individuals or corporations that have been underpaying their rental income tax obligations.

Speaking on the sidelines of a breakfast meeting about the tax forum organized by the American Chamber of Commerce Uganda at Sheraton Hotel, Kampala on Thursday, Jaye Connolly-LaBelle, the RippleNami Uganda chairperson said their system has collected data that will help government close the tax compliance gap in terms of rental income.

“Right now, there is probably 10% of the rental income tax being collected. I would say it should be around $200milion(shs713billion)a year.  That is  a rough estimate from the 30million collected currently,” Connolly-LaBelle told journalists.

“There has not been a lot of tax compliance because there has not been information. We are trying to make it simpler.”

In the deal signed by government, RippleNami is set to build a data visualization digital system to integrate different types of data to match rental properties in Greater Kampala Metropolitan Area with their owners but also understand the nature of occupancy of the property.

The system will integrate data from tax body URA, KCCA, NIRA, Ministry of Lands, Ministry of Local Government, National Water and Sewerage Corporation and UCC to help know the real owners of property but also attach the value of rental income.

Speaking at the same function, James Odong, the acting commissioner in charge of domestic taxes at URA emphasized that the problem has been low levels of compliance among the public.

“The problem has been non declaration of incomes that people earn from their property and partly our inability to access the respective data about those who own property from the various institutions that collect them. What this system is going to help us is to aggregate all the data together,”Odong said.

“The data will be availed to URA to make sense out of it and we shall later focus on engaging the respective landlord basing on the data gathered by the system and to follow them in terms of what they have to pay in terms of taxes.”

The URA official however said they have not yet assessed in terms of figures what they expect to get in terms of rental income tax in the forthcoming financial year.

Several real estate players have in the past raised concern over the 25 percent  rental tax income that they said is most likely to make housing too expensive to handle but also trigger flights of tenants from rentals.

However, according to Patronella Namubiru, the Associate Director at Deloitte, there needs to have efforts by government to educate the public about their tax obligation.

“As the system gets utilized and gaps are identified, conversations have to take place between the different government ministries, departments and agencies to bridge the gaps. There is going to be concern from tax payers but I think there is need for URA to educate the public and but also accountability to happen,”Namubiru said.

RippleNami’s Connolly-LaBelle shared similar sentiments on educating the public about their tax obligations in regards the rental income tax.

“It is more about education and communication between government and the public. The public has got to be able to concern its opinions in regards tax and government must respond to the concerns in form a two way communication. I don’t think education and marketing have been addressing this,” she said.

Tags: Patronella NamubiruRental income taxRippleNamiugandaUgandan Newsura
ShareTweetSend
Previous Post

Busoga sub region given seven ambulances to support maternal health services

Next Post

Government to get rid of unutilized AstraZeneca vaccine doses

Kenneth Kazibwe

Kenneth Kazibwe

Related Posts

State drags feet as Minister Nandutu moves to halt Karamoja iron sheet trial over vague law

Minister Nandutu loses bid to halt iron sheets trial

by Kenneth Kazibwe
May 29, 2023
0

The Anti Corruption Division of the High Court in Kampala has dismissed an application in which State Minister for Karamoja,...

Museveni finally assents to Anti-Homosexuality Bill

by Kenneth Kazibwe
May 29, 2023
0

President Museveni has finally assented to the Anti-Homosexuality Bill, 2023 to make it law. The Speaker of Parliament, Anita Among...

Nigeria to swear in new president today

Nigeria to swear in new president today

by NP admin
May 29, 2023
0

The next president of Africa's largest democracy, Nigeria, is due to be sworn in on Monday. Bola Tinubu, 71, won...

Pan Africanists shed light on significance of Africa day

Pan Africanists shed light on significance of Africa day

by Amon Katungulu
May 29, 2023
0

As Africa observed the Africa Day celebrated annually on May 25, Pan Africanists shed light on the significance of the...

Next Post
Government to get rid of unutilized AstraZeneca vaccine doses

Government to get rid of unutilized AstraZeneca vaccine doses

ADVERTISEMENT
Plugin Install : Widget Tab Post needs JNews - View Counter to be installed
  • Trending
  • Comments
  • Latest
State drags feet as Minister Nandutu moves to halt Karamoja iron sheet trial over vague law

Minister Nandutu loses bid to halt iron sheets trial

May 29, 2023

Museveni finally assents to Anti-Homosexuality Bill

May 29, 2023
Nigeria to swear in new president today

Nigeria to swear in new president today

May 29, 2023
  • About
  • Advertise
  • Privacy & Policy
  • Careers
Call us: +256-417-720-101
Email: [email protected]

© 2020 Nile Post Uganda Ltd. - A Next Media Services Company.

No Result
View All Result
  • News
    • Politics
    • Business
    • 2021 Elections Watch
      • The Election Podcast
    • Exclusive
    • Investigations
  • Education
  • Security
    • Cyber Security
  • Health
    • Coronavirus outbreak
  • Opinions
    • Columns
      • Parting Shot
      • Two Sides of a Coin
      • Bazanye’s Quick Shots
      • Mable Twegumye Zake’s #BitsOfMe&You
      • But this Year!
      • What Did I Miss?
  • Lifestyle
    • Hatmahz Kitchen
    • Food Hub
    • Let’s Talk About Sex
    • Entertainment
    • Tour & Travel
    • Love Therapist
    • Homes
  • Global
    • Africa
    • Asia
    • Middle East
    • Europe
    • The Americas
  • East Africa
    • Kenya
    • Rwanda
    • Tanzania
    • South Sudan
    • DR Congo
    • Ethiopia
    • Sudan
  • Technology
  • Ask the Mechanic
  • Special Reports
    • Kabaka Mutebi’s 25th Coronation Series
    • Focus on Somalia
    • Sino-Africa
    • Uganda at 56
    • Anti-Corruption Fight
    • Age Limit Map
    • Tuve Ku Kaveera
  • Sports
    • Place-It
    • StarTimes Uganda Premier League
    • Bundesliga
    • World Cup
  • Jobs

© 2020 Nile Post Uganda Ltd. - A Next Media Services Company.