The Ministry of Finance has urged the Uganda Revenue Authority (URA) and landlords to reach a consensus on the timing of issuing EFRIS rent receipts. This follows concerns about requiring landlords to issue monthly Electronic Fiscal Receipting and Invoicing Solution (EFRIS) receipts for rent payments.
Over the weekend in Kampala, State Minister for Finance in charge of Investment, Ms Evelyn Anite, called the tax measure “impractical.” She said the policy could disrupt the government’s financial calendar. Many tenants, including government departments and NGOs, often delay rent payments.
“URA and the government operate on a calendar month that requires taxpayers to pay taxes by the 15th of the following month. However, in practice, it doesn’t work like that,” Ms Anite said. She added that similar concerns arose during recent meetings with large taxpayers.
EFRIS rent receipts come from a digital system designed to monitor financial transactions, especially those subject to Value Added Tax (VAT). The system helps businesses record and send transaction data to URA in real-time. This improves tax compliance and reduces revenue losses. Through EFRIS, businesses generate and manage invoices and receipts electronically. This allows URA to track and verify transactions easily.
At a recent business forum hosted by audit firm Grant Thornton and the Indian Business Forum at Sheraton Hotel, a real estate sector participant questioned the monthly EFRIS rent receipts rule. The participant highlighted challenges when tenants, including government agencies, delay rent payments. They asked if the policy could hurt the real estate sector.
Grant Thornton Uganda CEO Jasmine Shah responded by urging businesses to use government waivers on interest and penalties. He encouraged landlords and others to clear outstanding tax dues before June 2026. Regarding EFRIS, Mr Shah said, “Landlords want URA to allow them to issue proforma invoices at the end of each month instead of receipts. This would let them generate EFRIS receipts only after rent has been paid.”
This approach offers more flexibility. It aligns tax reporting with actual rent collection. It could also prevent revenue timing issues and ease pressure on landlords managing delayed payments.
The Ministry of Finance’s call for consensus shows the need for clearer rules on EFRIS rent receipts issuance. Finding common ground between URA and landlords will be key. It will help smooth implementation and avoid problems in the rental and tax sectors.
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