Sudhir Ruparelia Takes Centre Stage as URA Turns to Property Leaders for Better Rental Tax Compliance

Businessman Sudhir Ruparelia was at the centre of a high level engagement between Uganda Revenue Authority and Kampala’s leading landlords as the tax body sought stronger compliance with rental income obligations and digital reporting.

The discussion came against a backdrop of weaker rental income tax collections. URA Commissioner General John Rujoki Musinguzi told the meeting that rental income tax collections fell by about one percent in the 2025/2026 financial year, even as several other major tax categories recorded double digit growth. The real estate sector contributes an estimated six to seven percent of Uganda’s gross domestic product, making compliance in the sector an important part of domestic revenue mobilisation.

Musinguzi said the purpose of the engagement was to address compliance gaps while giving property owners a clearer understanding of their obligations. He also pointed to the growing use of the Electronic Fiscal Receipting and Invoicing Solution, known as EFRIS, as a tool for recording transactions and strengthening tax administration.

Ruparelia was among the investors singled out during the meeting as having already embraced EFRIS. The URA chief said the authority wanted to work with early adopters and other landlords to make the transition practical rather than relying solely on enforcement.

Representatives of the landlords also used the meeting to raise operational concerns. Godfrey Kirumira, who spoke on behalf of property owners, said landlords understood that EFRIS was a compliance mechanism rather than a new tax. The sector nevertheless called for continued consultation, clearer guidance and room to resolve technical or policy issues before they become disputes.

Among the issues discussed was the treatment of allowable expenses for companies operating in the property sector. URA indicated that such matters could be considered through a structured policy dialogue, while maintaining that rental income declarations and receipts must accurately reflect actual transactions.

The meeting ended with a commitment on both sides to improve cooperation. URA said it would provide technical support, written guidance and direct assistance to landlords adopting the digital system, while property owners signalled readiness to work toward stronger compliance.

For investors such as Sudhir Ruparelia, whose business interests include substantial property holdings, the discussion reflects a broader shift in Uganda’s real estate industry toward more formalised digital tax administration. The continuing dialogue is likely to remain important as landlords, tenants and the revenue authority adjust to the changing requirements.

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