Samuel Sebuliba

Samuel Sebuliba

Comments

HÓLLW 2

Samuel Sebuliba is a dynamic 21st Century Leader,Motivational Speaker,Preacher,Business man with a nose for Real Estate and Legal.He is currently pursuing a Law Degree at Cavendish University Uganda.

Operating as usual

18/11/2021

Taxes that apply to RealEstate in Uganda

Here is everything you need to know about the taxes that apply to real estate in Uganda, as of July 1st 2021.

Rental Income Tax

Governing Law:

Section 5 of the Income Tax Act provides for the taxation of Rental Income.

What is Rental Income Tax?

Rental Income tax is a tax on the money you earn from the lease or rent of all immovable property (lands and buildings).

Rental income is singled out from other sources of income you earn, and is taxed separately. You must declare rental income independently of any other business income when filing your tax returns with the URA.

Who Needs to Pay?

Anyone who earns rental income. This includes landlords/landladies, rental property businesses, apartment owners, and even those who rent then sub-let a property to someone else.

How Much Do I Pay?

As of July 1st 2021, the Rental Income Tax Rate for individuals and non-individuals (businesses) is 30% of rental income earned.

However, you are allowed to claim up to 75% of allowable deductions for expenditure and losses incurred in generating rental income. These expenses should be supported by invoices or receipts.

After considering the allowable deductions, your effective tax rate can be as low as 7.5%.

What Counts as an Allowable Deduction?

Expenditures and losses incurred by a person, in the production of rent, shall be allowed as a deduction for any year of income. This includes:

Cost of repairs

Ground Rent

Fees paid to a property manager

Costs to advertise and market the property

Utility bills and expenses

Bad debts

Interest expenses (i.e. interest paid on loans)

Capital deductions in form of wear and tear

Capital deductions and losses brought forward from previous years

Capital allowances in form of Industrial building at 5% straight line annually is an allowable expenditure but this is not available to rental property which is purely used for residential purposes (this excludes serviced apartments)

VAT will form part of a given expense and is allowed as a deduction for as long as the proprietor is not registered for VAT. Where the proprietor is registered for VAT, they should be eligible for a tax credit for VAT paid.

Example of How to Compute Rental Tax

Example: A company or individual earns rental income of USh 40,000,000

They are allowed to claim expenses of up to 75% of rental income for the year.

Rental expenses are calculated are as follows:

Chargeable Income = total rental income – total allowable expenses

Therefore, Chargeable Income = 40,000,000 – (75%*40,000,000)

Therefore, Chargeable Income = 40,000,000 – 30,000,000

Therefore, Chargeable Income = 10,000,000

Rental Tax = 30% of Chargeable Income

Therefore, Rental Tax = 30% of 10,000,000

Therefore, Rental Tax = 3,000,000

Rental Income Tax Compliance Requirements

If you are earning rental income, you must:

Register with the URA for Rental Income

Declare all of your sources of Rental Income in full for a year of income

Complete a tax return of rental income for the year of income with supporting agreements, such as a tenancy agreement, or rental receipts issued to tenants(s) during the year

Submit (furnish) the return ANNUALLY to the URA, through the online platform on the Webportal within six (6) months after the end of the relevant year of income

Penalties

Penalties can apply for the following:

Late filing of tax returns

Failure to maintain proper books of accounts

Failure to provide information

Making false or misleading statements

Understating provisional tax estimates

Failure to register for taxes and E-Invoices

These penalties can range between USh 200,000 and USh 50 million

Property Rates / Property Tax

Governing Law:

Local Government (Rating) Act 2005 as amended, the Local Government (Rating) regulation 2006 and KCC Act 2010.

What is Property Rates / Property Tax?

Property Rates, also known as Property Tax, is a tax on the value of your commercial property. It is different from Rental Income Tax; Rental Income Tax is paid to the URA, whereas Property Tax is paid to the local government, for example, KCCA or Divisions or Municipalities.

(Property rates should also be distinguished from Ground Rent. Unlike Property rates, Ground Rent is a charge on land leased out by KCCA, whether developed or not).

Property Tax applies to any property or building commercially managed, like houses rented to tenants, shops, factories, or any part of a property used for business, even if it is owner-occupied. It does not apply to the residential home that you live in.

Your property value is determined by your property’s estimated rental value (whether it is rented or not).

Who Needs to Pay?

Anyone who owns a building which is used for commercial purposes (including residential rented properties) is eligible to pay.

Property tax does not apply to residential owner-occupied properties. However, it does apply if a property is earning rental income, as the property is therefore considered a business/commercial property.

Vacant land is excluded from property rates.

How Much Do I Pay?

The amount levied annually on a property is usually between 0 and 12% of the ratable value, with a minimum charge of 2,000/=. For KCCA it is 6%.

How do I Pay?

Demand Notes are printed and issued to the property owners indicating the amounts payable for the given property.

Payment can be made by way of Electronic Funds Transfer (EFT) or Bank drafts, or to a Bank of one’s choice upon obtaining a Payment Advise Form (PAF) or through mobile telecom and pay platforms upon visiting the division offices or the Large Tax Office at City Hall. Payments to KCCA can also be remitted electronically via the KCCA eCitie Portal

Property rates shall be paid in not more than two equal installments on such dates, as KCCA may appoint, within the financial year for which it is levied.

Where the owner of the property, upon approval by KCCA, spends money on any infrastructural work otherwise meant to be done by KCCA, this expenditure shall be offset against his or her pending rate.

Penalties

KCCA may charge and collect interest on any rate which remains in arrears for more than thirty days from the day it becomes payable at the rate of 2 per cent per month for the period the rate remains unpaid.

If a property owner fails to pay his/her property rates due, KCCA will recover these funds together with interest, if any, through the following:

Recovery by warrant

Recovery by action

Recovery from tenants and current occupiers

What happens if I buy (purchase) a property from someone?

Buyer to satisfy himself or herself about arrears:

It shall be the right of the buyer to demand a certification of arrears from the seller, and if the seller does not produce the certificate, the buyer may inquire from the Authority upon the payment of a prescribed fee.

Prohibition against transfer of property in arrears of rate:

No transfer of any property shall be registered under any law for the time being in force, for the registration of titles or documents unless a certificate that no arrears of rates are due in respect of that property has been issued by the Authority of the area where the property is situated.

Person liable to notify transfer of the property:

In the event of transfer of ownership, the liability to pay a rate is also transferred. The person liable to pay the rate shall notify the fact of transfer in writing to the Town Clerk of the Division concerned.

The person liable to pay the rate shall continue to be liable for the rate until he or she notifies the transfer in accordance with subsection (1) but nothing in this subsection shall affect the liability of the transferee to pay the rate which falls due after the transfer in his or her favor.

(Adopted from RealMuloodiNews)

Taxes that apply to RealEstate in Uganda

Here is everything you need to know about the taxes that apply to real estate in Uganda, as of July 1st 2021.

Rental Income Tax

Governing Law:

Section 5 of the Income Tax Act provides for the taxation of Rental Income.

What is Rental Income Tax?

Rental Income tax is a tax on the money you earn from the lease or rent of all immovable property (lands and buildings).

Rental income is singled out from other sources of income you earn, and is taxed separately. You must declare rental income independently of any other business income when filing your tax returns with the URA.

Who Needs to Pay?

Anyone who earns rental income. This includes landlords/landladies, rental property businesses, apartment owners, and even those who rent then sub-let a property to someone else.

How Much Do I Pay?

As of July 1st 2021, the Rental Income Tax Rate for individuals and non-individuals (businesses) is 30% of rental income earned.

However, you are allowed to claim up to 75% of allowable deductions for expenditure and losses incurred in generating rental income. These expenses should be supported by invoices or receipts.

After considering the allowable deductions, your effective tax rate can be as low as 7.5%.

What Counts as an Allowable Deduction?

Expenditures and losses incurred by a person, in the production of rent, shall be allowed as a deduction for any year of income. This includes:

Cost of repairs

Ground Rent

Fees paid to a property manager

Costs to advertise and market the property

Utility bills and expenses

Bad debts

Interest expenses (i.e. interest paid on loans)

Capital deductions in form of wear and tear

Capital deductions and losses brought forward from previous years

Capital allowances in form of Industrial building at 5% straight line annually is an allowable expenditure but this is not available to rental property which is purely used for residential purposes (this excludes serviced apartments)

VAT will form part of a given expense and is allowed as a deduction for as long as the proprietor is not registered for VAT. Where the proprietor is registered for VAT, they should be eligible for a tax credit for VAT paid.

Example of How to Compute Rental Tax

Example: A company or individual earns rental income of USh 40,000,000

They are allowed to claim expenses of up to 75% of rental income for the year.

Rental expenses are calculated are as follows:

Chargeable Income = total rental income – total allowable expenses

Therefore, Chargeable Income = 40,000,000 – (75%*40,000,000)

Therefore, Chargeable Income = 40,000,000 – 30,000,000

Therefore, Chargeable Income = 10,000,000

Rental Tax = 30% of Chargeable Income

Therefore, Rental Tax = 30% of 10,000,000

Therefore, Rental Tax = 3,000,000

Rental Income Tax Compliance Requirements

If you are earning rental income, you must:

Register with the URA for Rental Income

Declare all of your sources of Rental Income in full for a year of income

Complete a tax return of rental income for the year of income with supporting agreements, such as a tenancy agreement, or rental receipts issued to tenants(s) during the year

Submit (furnish) the return ANNUALLY to the URA, through the online platform on the Webportal within six (6) months after the end of the relevant year of income

Penalties

Penalties can apply for the following:

Late filing of tax returns

Failure to maintain proper books of accounts

Failure to provide information

Making false or misleading statements

Understating provisional tax estimates

Failure to register for taxes and E-Invoices

These penalties can range between USh 200,000 and USh 50 million

Property Rates / Property Tax

Governing Law:

Local Government (Rating) Act 2005 as amended, the Local Government (Rating) regulation 2006 and KCC Act 2010.

What is Property Rates / Property Tax?

Property Rates, also known as Property Tax, is a tax on the value of your commercial property. It is different from Rental Income Tax; Rental Income Tax is paid to the URA, whereas Property Tax is paid to the local government, for example, KCCA or Divisions or Municipalities.

(Property rates should also be distinguished from Ground Rent. Unlike Property rates, Ground Rent is a charge on land leased out by KCCA, whether developed or not).

Property Tax applies to any property or building commercially managed, like houses rented to tenants, shops, factories, or any part of a property used for business, even if it is owner-occupied. It does not apply to the residential home that you live in.

Your property value is determined by your property’s estimated rental value (whether it is rented or not).

Who Needs to Pay?

Anyone who owns a building which is used for commercial purposes (including residential rented properties) is eligible to pay.

Property tax does not apply to residential owner-occupied properties. However, it does apply if a property is earning rental income, as the property is therefore considered a business/commercial property.

Vacant land is excluded from property rates.

How Much Do I Pay?

The amount levied annually on a property is usually between 0 and 12% of the ratable value, with a minimum charge of 2,000/=. For KCCA it is 6%.

How do I Pay?

Demand Notes are printed and issued to the property owners indicating the amounts payable for the given property.

Payment can be made by way of Electronic Funds Transfer (EFT) or Bank drafts, or to a Bank of one’s choice upon obtaining a Payment Advise Form (PAF) or through mobile telecom and pay platforms upon visiting the division offices or the Large Tax Office at City Hall. Payments to KCCA can also be remitted electronically via the KCCA eCitie Portal

Property rates shall be paid in not more than two equal installments on such dates, as KCCA may appoint, within the financial year for which it is levied.

Where the owner of the property, upon approval by KCCA, spends money on any infrastructural work otherwise meant to be done by KCCA, this expenditure shall be offset against his or her pending rate.

Penalties

KCCA may charge and collect interest on any rate which remains in arrears for more than thirty days from the day it becomes payable at the rate of 2 per cent per month for the period the rate remains unpaid.

If a property owner fails to pay his/her property rates due, KCCA will recover these funds together with interest, if any, through the following:

Recovery by warrant

Recovery by action

Recovery from tenants and current occupiers

What happens if I buy (purchase) a property from someone?

Buyer to satisfy himself or herself about arrears:

It shall be the right of the buyer to demand a certification of arrears from the seller, and if the seller does not produce the certificate, the buyer may inquire from the Authority upon the payment of a prescribed fee.

Prohibition against transfer of property in arrears of rate:

No transfer of any property shall be registered under any law for the time being in force, for the registration of titles or documents unless a certificate that no arrears of rates are due in respect of that property has been issued by the Authority of the area where the property is situated.

Person liable to notify transfer of the property:

In the event of transfer of ownership, the liability to pay a rate is also transferred. The person liable to pay the rate shall notify the fact of transfer in writing to the Town Clerk of the Division concerned.

The person liable to pay the rate shall continue to be liable for the rate until he or she notifies the transfer in accordance with subsection (1) but nothing in this subsection shall affect the liability of the transferee to pay the rate which falls due after the transfer in his or her favor.

(Adopted from RealMuloodiNews)

12/11/2021

Stagecoach: Have you killed the devil?
Nat Love: I don’t know.

‘The harder they fall’ movie is attracting great reviews from all directions for its great cast and banging sound track featuring Jay-Z and Fella Kuti, among others. The NY Times called it the ‘bloody horse opera with a charismatic cast’. However, the fellows at polygon.com have different ideas. They write that “apart from the star-studded ensemble, its story is too slight to back up the overlong runtime.” Their big question “Is the film purely entertainment, or does it have a message?” As an african-african from Uganda I am supposed to be excited about the movie’s black success but I want to agree with the polygon fellows that this movie lacks a message. Nat Love is seeking revenge for the death of his parents but so what? To what end? All I see in the movie is revenge, crime and hate which have described the black race for a long time. The movie is a Netflix movie,so guess who went away with the moneybag. The website argues that “The prospects of a Black Western with this much star power invited hopes of a paradigm shift that would allow more of these movies to be made, and fight the enduring, dangerous Western-based myth that America’s history was primarily white. These big productions promising change through representation often do invite us to focus on their importance, to the point where we backseat the actual quality of the movie. But Samuel isn’t interested in telling real people’s stories, choosing between glut and substance, or providing a worthwhile political or emotional conceit. And all those things are important for a film that’s out to make a difference.
Instead, he’s remade the Western not wholly in the image of Black folks, but in the image of a Netflix movie — a low-impact, high-prestige, easily digestible streaming project. Never has the Western genre looked so small and devoid of meaning. The Harder They Fall is a deliberate step forward for onscreen representation of historical Black figures. But it isn’t as good as it needs to be to make those names memorable to a country that’s forgotten them.”
Revenge, crime and hate are the black race discourses that are ideological and The harder they fall plays perfectly into the epoch because it is disguised as entertainment. I have so much to say but let me end with this quote from W. E. B. Du Bois “The slave went free; stood a brief moment in the sun; then moved back again toward slavery.”

Stagecoach: Have you killed the devil?
Nat Love: I don’t know.

‘The harder they fall’ movie is attracting great reviews from all directions for its great cast and banging sound track featuring Jay-Z and Fella Kuti, among others. The NY Times called it the ‘bloody horse opera with a charismatic cast’. However, the fellows at polygon.com have different ideas. They write that “apart from the star-studded ensemble, its story is too slight to back up the overlong runtime.” Their big question “Is the film purely entertainment, or does it have a message?” As an african-african from Uganda I am supposed to be excited about the movie’s black success but I want to agree with the polygon fellows that this movie lacks a message. Nat Love is seeking revenge for the death of his parents but so what? To what end? All I see in the movie is revenge, crime and hate which have described the black race for a long time. The movie is a Netflix movie,so guess who went away with the moneybag. The website argues that “The prospects of a Black Western with this much star power invited hopes of a paradigm shift that would allow more of these movies to be made, and fight the enduring, dangerous Western-based myth that America’s history was primarily white. These big productions promising change through representation often do invite us to focus on their importance, to the point where we backseat the actual quality of the movie. But Samuel isn’t interested in telling real people’s stories, choosing between glut and substance, or providing a worthwhile political or emotional conceit. And all those things are important for a film that’s out to make a difference.
Instead, he’s remade the Western not wholly in the image of Black folks, but in the image of a Netflix movie — a low-impact, high-prestige, easily digestible streaming project. Never has the Western genre looked so small and devoid of meaning. The Harder They Fall is a deliberate step forward for onscreen representation of historical Black figures. But it isn’t as good as it needs to be to make those names memorable to a country that’s forgotten them.”
Revenge, crime and hate are the black race discourses that are ideological and The harder they fall plays perfectly into the epoch because it is disguised as entertainment. I have so much to say but let me end with this quote from W. E. B. Du Bois “The slave went free; stood a brief moment in the sun; then moved back again toward slavery.”

Videos (show all)

Hunger will get to the people before Covid 19 does but we must do whatever it takes to provide a solution.A special than...

Products

Faith,Hope,Love,Purpose,Career Guidance,Law

Telephone

Address


Bukoto Street
Kampala
00256
Other Lawyers & Law Firms in Kampala (show all)
CR Amanya Advocates & Solicitors CR Amanya Advocates & Solicitors
Plot 49 Salim Bay Road
Kampala, 256

CR. Amanya Advocates & Solicitors is a full service law firm located in Kampala, Uganda. They are also Commissioners for Oaths and Notaries Public. They mainly specialise in corporate and commercial law, litigation and dispute resolution, land and family.

Masereka, Mangeni & Co. Advocates Masereka, Mangeni & Co. Advocates
Plot 14, Kampala Road, Insurance House
Kampala, 71987

M/S Masereka, Mangeni & Co Advocates, is a private legal practice Firm with its offices at insurance house, 2nd floor, suite 4, plot 14 Kampala Road, Kampa

Crane Associated Advocates Crane Associated Advocates
Plot 45, Prince Charles Drive, Kololo, Kampala
Kampala, +00256

Crane Associated Advocates (CAA) is a full service law firm. We are a very dynamic, client-oriented and solution-focused firm with a team of energetic, foreign and locally trained professionals. We ensure quality and reliability of service.

Platform for Integrity Ambassadors Limited Platform for Integrity Ambassadors Limited
4km, Entebbe Road I P.O.Box 22068
Kampala, KAMPALA, UGANDA

Integrity Ambassadors' Development Association is an organization promoting Integrity, Transparency and Accountability

Legal Aid Service Providers Network-Laspnet Legal Aid Service Providers Network-Laspnet
Plot 10,Block75, Balintuma Rd-Mengo
Kampala, P.O.BOX 8488 KAMPALA

LASPNET is a national member-based NGO established in 2004 to provide strategic linkages and a collaboration framework for the Legal Aid Service Providers

KTA Advocates-Formerly Karuhanga, Tabaro & Associates KTA Advocates-Formerly Karuhanga, Tabaro & Associates
Floor 3, Plot 4, Hannington Road
Kampala, UG

A leading and premier law firm in Uganda with industry leading expertise in Intellectual Property, Technology, Corporate & Commercial law and Dispute Resolution.

ETRON Design HOUSE ETRON Design HOUSE
Equatorial Mall Room.631
Kampala, P.0 BOX 5626 KAMPALA-UGANDA

For Architectural and Engineering consultancy services

Katende, Ssempebwa & Company Advocates Katende, Ssempebwa & Company Advocates
Plot 20 Kampala Road
Kampala, 256

Katende, Ssempebwa and Company Advocates was founded in 1969 and is the oldest and most prestigious law firm in Uganda. We are a full service advisory law firm providing all legal and related advisory services in a variety of legal practice areas.

RN Advocates RN Advocates
Plot 37/39 William Street
Kampala, 256

RN Advocates is a law firm located in Kampala, Uganda

Lex Uganda Advocates Lex Uganda Advocates
8th Floor Communications House. Plot 1 Colville Street
Kampala, P. O. BOX 22490

The law firm of Lex Uganda Advocates, Solicitors is a premier commercial and corporate law firm in the City of Kampala, Uganda. It was founded in 1996 an

The Forum of South African Businesses in Uganda The Forum of South African Businesses in Uganda
15A Nakasero Road
Kampala, 0000

The Forum of South African Businesses in Uganda (FOSABU) is non-political and Not for Profit Organisation based in Uganda.