URA Warns Landlords! Give Your Tenants the Right EFRIS Receipts

The Uganda Revenue Authority (URA) has warned landlords against failing to issue EFRIS receipts to tenants or giving receipts that show an amount lower than the actual rent paid.

In a notice to tenants, URA encouraged them to request an EFRIS receipt from their landlord every time they pay rent. The authority said the receipt must reflect the actual amount of rent paid.

URA explained that having the correct receipt is important because it gives tenants proper evidence of their rental expenses and, where applicable, enables them to claim the correct input VAT tax.

The authority said it has observed instances where rent is consistently increased, but landlords either fail to issue EFRIS receipts or issue receipts showing amounts lower than the actual rent paid. This makes it difficult for URA to establish the actual rental income received by landlords.

URA Commissioner General John Rujoki Musinguzi warned that issuing receipts that do not reflect the true amount paid amounts to tax fraud and that the authority will not tolerate such practices.

“Giving someone a receipt that does not show the actual amount paid is tax fraud, and we cannot allow it,” Musinguzi warned.

According to URA, understating the amount of rent on a receipt can help conceal the actual income earned by a landlord. This can make it possible for some landlords to declare less rental income than they actually receive and consequently avoid paying the correct amount of tax.

The authority is therefore encouraging tenants to protect themselves by making sure they receive the correct EFRIS receipt whenever they pay rent. Tenants have been told not to accept a receipt showing an amount different from the money they actually paid.

URA also emphasized that tenants should not allow themselves to be inconvenienced because of a landlord’s failure to comply with tax requirements. The authority says demanding an EFRIS receipt is a tenant’s right.

The notice is part of URA’s wider efforts to improve tax compliance and prevent the concealment of income. By ensuring that rental payments are accurately recorded, the authority can better establish the income earned by landlords and ensure that the correct taxes are paid.

URA has urged landlords to issue accurate EFRIS receipts and encouraged tenants to remain firm in demanding proper documentation whenever they make rental payments.

For more information, tenants and landlords can contact URA on 0772 142097 or 0772 142827. The authority’s toll-free numbers are 0800 217 000 and 0800 117 000.