Ruparelia Group joins City Landlords at URA’s EFRIS Dialogue

KAMPALA, UGANDA — The Uganda Revenue Authority (URA) has initiated a strategic, high-level stakeholder engagement with prominent property owners, developers, and investors to address tax compliance within the real estate sector. 

Amid a 1% decline in rental income tax collections for the 2025/2026 financial year, the tax authority is pivoting away from immediate enforcement measures, opting instead for continuous dialogue and collaborative technical onboarding. 

Uganda’s tax-to-GDP ratio currently stands at approximately 14%, while roughly 40% of all collected domestic revenue is utilized to service the country’s national debt. To foster fiscal independence and reduce reliance on external borrowing, the government has set a short-term target to increase the tax-to-GDP ratio to at least 25%. The real estate sector has been designated as a critical pillar expected to play a transformative role in widening the tax base. 

Collaborative Digital Transition

Central to the discussion is the integration of the Electronic Fiscal Receipting and Invoicing System (EFRIS). While the URA recently expanded mandatory EFRIS usage across 12 major economic sectors—including real estate—property owners expressed an active willingness to participate in the digital transition, provided the rollout respects the unique operational realities of the rental market. [2, 5, 6, 7] 

Representing the property owners, were prominent Kampala landlords including Sudhir Ruparelia, Ambassador Godfrey Kirumira, Chairman of Landlords and Property Owners, am8ng others.

In his remarks Kirumira emphasized that digital systems are essential for modernizing administration rather than introducing new tax burdens.

 He noted: "EFRIS should not be viewed as a new tax, but as a mechanism for improving tax administration. The property sector represents massive, long-term investments funded by personal savings, family enterprises, and bank financing. Long-term progress requires both sides to work together through consultation rather than confrontation." [2, 9] 

URA Compliance Framework and Onboarding Support

In response to industry feedback, URA Commissioner General John Rujoki Musinguzi announced that the tax authority will provide proactive assistance to ensure zero business disruption during the transition. 

The URA framework for the real estate digital transition includes:

• Dedicated Onboarding Teams: A specialized technical team will be deployed exclusively to handhold landlords through portal setups and system API integrations. 

• Education and Guidance: The authority will issue clear written guidelines and conduct ongoing physical stakeholder engagements to demystify digital invoicing. 

• A Three-Month Transition Window: Landlords in the Kampala Central Business District have been granted a structured grace period to declare rental incomes accurately and align records with EFRIS invoicing protocols.  

Commissioner General Musinguzi underscored that every e-receipt issued must match the exact terms of the underlying tenancy agreement. While emphasizing that dialogue and support remain the primary tools for compliance, he noted that enforcement actions under the Tax Procedures Code Act will be applied firmly where voluntary compliance efforts are intentionally ignored.