The EFRIS receipt policy for landlords has sparked protest across Uganda’s real estate sector. Many landlords say the measure is unrealistic because tenants, including government offices and NGOs, often delay rent payments. The Ministry of Finance has urged the Uganda Revenue Authority (URA) to work with landlords to find a more practical solution.
At a weekend press briefing in Kampala, the State Minister for Investment, Evelyn Anite, called the requirement for monthly EFRIS receipts “impractical.” She explained that while URA uses a monthly calendar and expects tax payments by the 15th of the next month, rent does not always come in on time. Anite also noted that large taxpayers raised similar concerns during a recent consultation.
EFRIS, introduced by URA, tracks business transactions in real time. It helps collect Value Added Tax (VAT) by ensuring that businesses send digital receipts and invoices directly to URA. Under this system, landlords must issue a receipt every month—regardless of whether tenants have paid. This rule creates problems for landlords who rely on rent to meet their own obligations. Issuing receipts for unpaid rent puts them at risk of penalties and causes financial strain.
These concerns surfaced again during a budget breakfast meeting at the Sheraton Hotel. Audit firm Grant Thornton and the Indian Business Forum organized the event. A real estate investor in the audience asked why landlords should issue receipts for rent they haven’t received. The question pointed to a wider issue—many tenants, especially government institutions, pay late.
Jasmine Shah, CEO of Grant Thornton Uganda, suggested a workaround. He proposed that landlords issue proforma invoices instead of formal receipts. These invoices would record expected rent without confirming payment. After tenants pay, landlords would then issue official EFRIS receipts. Shah said this approach aligns better with how rent payments work in practice.
Shah also encouraged businesses to take advantage of the government’s ongoing tax waiver. Companies that settle outstanding taxes before June 2026 can avoid penalties and interest charges. He urged all businesses, including landlords, to use this opportunity to clean up their tax records.
Minister Anite supported the call for a more realistic tax policy. She said systems like EFRIS must fit actual business environments, not just theoretical models. Forcing landlords to issue monthly receipts without payments can lead to errors, disputes, and even reduced compliance. Instead, Anite recommended ongoing discussions between URA and landlords to create a policy that works for both sides.
The EFRIS receipt policy for landlords is part of a larger push to digitize Uganda’s tax system. Tools like EFRIS aim to improve efficiency and reduce tax evasion. However, their success depends on how well they adapt to different industries. Real estate presents unique challenges, especially around delayed payments and long lease terms.
If not adjusted, this policy may damage investor confidence in real estate. Landlords facing tight cash flow may avoid formal leases or find ways to sidestep the system. That would hurt tax collection instead of helping it.
To succeed, Uganda needs digital tax systems that reflect how business actually happens. URA should consider allowing proforma invoicing for rent. This option could keep landlords compliant without forcing them to issue false records. Open dialogue between tax authorities and the business community will be key to achieving fair and effective implementation.
