Uganda Revenue Authority (URA) has called upon stakeholders in the housing sector to diligently maintain their rental tax records to prevent clashes with tax authorities during annual audits.
Godson Muhwezi, the Compliance Rental Officer at URA, emphasizes the importance of accurate record-keeping to monitor tax-deductible expenses.
Godson Muhwezi, Compliance Rental Officer at URA, highlights the necessity for record-keeping:
"It is crucial for sector players in the housing industry to keep track of their rental tax records. This ensures accurate monitoring of expenses, revenue, and deductions throughout the fiscal year, preventing conflicts with tax authorities during annual audits."
The introduction of the Voluntary Disclosure Program estimated that the taxman could collect approximately $200 million in rental income tax, surpassing the current annual collection of about $30 million by URA.
Godson Muhwezi underscores URA's commitment to training taxpayers in the housing sector:
"Uganda Revenue Authority is actively engaged in training taxpayers within the housing sector, aiming to enhance their understanding and compliance with complex regulations in their jurisdiction."
In response to the Voluntary Disclosure Program, URA encourages non-compliant landlords to take advantage of Section 66, enabling them to disclose their tax liabilities without incurring interest and penalties.
Godson Muhwezi encourages non-compliant landlords to utilize the Voluntary Disclosure provision:
"We implore non-compliant landlords to utilize the Voluntary Disclosure provision under Section 66. This allows them to pay the principal tax liability without incurring interest and penalty."
Rental tax is set to be a significant focus for URA in the coming months as they strive to achieve an ambitious revenue target of 29 trillion shillings this year.
The housing sector is urged to proactively participate in tax compliance, ensuring a transparent and accountable system that aligns with URA's revenue collection objectives.