URA Issues Tough Warning to Landlords Over Understated Rent Receipts

The Uganda Revenue Authority (URA) has warned landlords against issuing rent receipts that show amounts lower than what tenants actually pay, saying the practice could amount to tax fraud.

The tax body has also reminded tenants to demand EFRIS receipts whenever they make rental payments and ensure that the amount captured on the receipt reflects the full amount paid to the landlord.

URA said it has noticed cases where landlords increase the amount of rent charged but fail to issue EFRIS receipts or provide receipts showing a lower figure than the actual rental payment. Such practices can make it difficult for the authority to establish the true income earned from rental properties.

The authority said tenants also stand to benefit from insisting on accurate receipts because the documents provide evidence of rental expenses and, where applicable, can support claims for the correct input VAT.
URA Commissioner General John Rujoki Musinguzi has cautioned landlords against using inaccurate receipts to hide part of their rental income. “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 rental payments can enable landlords to report less income than they actually receive, potentially resulting in the payment of less tax than required. The authority says it is working to close such gaps and improve compliance.

Tenants have therefore been encouraged not to accept an EFRIS receipt containing an amount different from what they have paid. URA says requesting an accurate receipt is a legitimate right and an important step in ensuring rental transactions are properly documented.
Landlords and tenants seeking clarification can contact URA on 0772 142097 or 0772 142827. The authority can also be reached through its toll-free numbers, 0800 217 000 and 0800 117 000.