{UAH} wbk:Here is the calculation for private rental property.

wbk,

Property tax is collected by local councils,much more like a trading license. Rental tax is collected by URA....much more like income tax...property tax according to the local government act is called property rates,not tax.

Property rate/tax are fees paid dependent on your property type, meant to cover the services provided by your local council such as; roads maintenance, street lighting and garbage collection. (Which is not the actual case scenario of Uganda)

Rental income tax on the other hand is a percentage of the gross rent payable when landlords receive rent from their tenants. This is income tax while property tax is ground rent. Anyone earning 235,000 and below per month does not pay income tax. Anything above that is charged.

You only pay based on occupancy. Your role is to notify URA as soon as tenant leaves that the house is vacant. They can even send their team to verify. You may be forced to pay if you didn't notify URA and they therefore use guess work. That is the reason it is important that tenant provides an official written termination. This is where a tenancy agreement is important

I am more concerned at the huge housing deficit the country faces. This, in my opinion, will go further to increase that deficit because less people will want to invest in "rentals". Anecdotal observations show that the "down trodden" class are struggling to find decent accommodation at affordable prices.Just look at the real estate market (selling houses), it is not doing as good as it should be majorly because of financial constraints.

URA should construct the flats and then loan them out to individuals then we shall pay that tax.

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"When a man is stung by a bee, he doesn't set off to destroy all beehives"

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