Kampala Landlords Seek More Time for EFRIS Compliance Amidst URA Warning

Kampala landlords and property owners have indicated their willingness to integrate the Electronic Fiscal Receipting and Invoicing Solution (EFRIS) into their operations. However, they are appealing to the Uganda Revenue Authority (URA) for additional time to fully adapt to the digital tax system and have requested clearer operational guidance.

During a recent engagement meeting with URA officials, prominent landlords acknowledged the necessity of digital systems for modernizing revenue collection. Godfrey Kirumira, chairman of the landlords’ association, emphasized that EFRIS should be seen as an administrative improvement rather than an additional tax burden. He called for continuous dialogue and proactive support from the URA to prevent disputes and ensure tax policies are practical for the real estate market.

Freeman Kiyimba, another significant property owner, echoed this sentiment, advocating for an extended transition period. “We need more time to appropriately take up this strategy and ensure that property owners understand what is required of them,” Kiyimba stated, highlighting the need for thorough understanding among property owners.

This dialogue occurs against a backdrop of stern warnings from URA leadership. Commissioner General John Rujoki Musinguzi expressed grave concern over a one percent decrease in rental income tax collections during the 2025/2026 financial year. This decline is particularly worrying given that other major tax categories experienced an average growth of 14 percent during the same period.

Musinguzi pointed out the discrepancy between the real estate sector’s significant contribution to the GDP and its stagnant tax revenue. He attributed the shortfall to issues such as inaccurate income declarations, non-issuance of receipts, and administrative weaknesses. The Commissioner General warned that understating rental income, failing to file returns, or circumventing EFRIS are illegal and carry consequences.

“EFRIS must match the actual tenancy agreement and rental account amount, and receipts must be issued under the correct landlord’s entity. Declared income must align with all EFRIS receipt records,” Musinguzi cautioned.

To support landlords in transitioning to the digital system, Musinguzi pledged that the URA would deploy a dedicated technical team to assist with EFRIS registration and ongoing support, as the authority intensifies efforts to bring all landlords into the digital tax framework.

Source: Daily Monitor (Uganda)