TYPES OF PROPERTY TAXES IN UGANDA
* Property tax
* Rental income tax
* Capital gains tax
* Withholding tax
* Stamp duty
Property Tax (Rates)
Property rates in Uganda are levied by local government councils. Property tax is an old tax but almost died a natural death until the enactment of Local government (rating) Act in 2005, when it was revived and became active. The current rating is governed by the local governments rates decree of 1979. This Act provides the mechanism for carrying out the valuation, assesment billing and collection of rates, and applies to kampala city council,muncipal councils,town councils and districts. This Act eliminates the monopoly of the chief government valuer and allows local governements to appoint their own choice of qualified registered valuer. The Act is supplemented by the Local Governments rating Regulations, 2005.
Rental income tax.
Rental income is the total amount derived and firstly amended in the financial year 2017/18 by Uganda Revenue Authority and has been successful. This tax is only associated with landlords and companies investing in rental investments. Every landlord is subjected to paying an annual rental income tax for his property and failure to pay may be forced or imprisoned for less than 6 months or fine of 2 million shillings
NOTE: Rental income tax is only paid when a person is letting out their immovable property (land or building) to another person and is earning income from it, but property tax is paid by a landlord for a commercial building (excludes residential) as long as it occupied it does not matter even if is the landlord occupying it.
Why do you need to submit a Tax Return