Ibrahim Bbosa, the URA spokesperson, has advised landlords to comply with the rental tax laws lest they be ready to face penalties.
He gave the warnings during an interview with Olive on The Fatboy Show where he revealed how only 8% of landlords in the country are paying their rental income taxes.
“Those who have not been compliant, you don't have to wait for the tax man to catch up with you because we eventually will find you. However, you don't have to wait to first get caught, we have a provision of voluntary disclosure. If you voluntarily disclose that you have property but haven't been paying taxes, we will allow you to pay the principle of the taxes that you owe the government without penalties and interest,” he advised.
In addition, he said that it's only fair that the 92% non-compliant landlords pay their taxes like their counterparts to enable collection of government revenue used to provide services to citizens.
To ensure effective compliance, the URA has deployed the Rental Tax Compliance System, a software application that will determine the highest priority individuals or corporations likely to be underpaying their rental income tax obligations.
According to Mr. Bbosa, the system using its database, will help expand the tax register and ensure that those engaged in businesses are paying a fair share of their taxes, especially landlords and property owners.
The app developed by RippleNami Inc, an American Technological Company, will enable URA to identify rental tax defiants with the help of information from government agencies such as NWSC, KCCA, Ministry of Finance and Ministry of Lands and Urban Development that will identify individuals, what they do and what they own.
The Rental Income Tax law demands taxes from owners of commercial buildings and other rental property.
Moreso, the URA recently generated a new regulation that will require those carrying out land transactions above Ugshs 10 million to have a Tax Identification Number (TIN) which is to help the body have more visibility on real estate dealings and to claim taxes on those in the business of buying and selling of land.
The Fatboy show is hosted by James Onen aka Fatboy, Olive, Sarah and Lesham every weekday from 6am to 10am on RX Radio.