Government wants to impose a 5% withholding tax on gains earned from the sale of land in cities and municipalities, according to the Income Tax Amendment Bill 2024 that was recently tabled in Parliament.
Also included in this proposal is a 5% tax on sale of rental property and sale of shares in a private company.
According to the proposal, taxpayers are required to remit this money to URA within 15 days after disposal of the assets or pay fines if the tax is not remitted within the stipulated period.
What this means is that if you sell your piece of land for Shs 50 million, you will be required to remit Shs 2.5 million to URA.
The proposal is likely to cause an uproar in the public given that there is a perception that Ugandans are already overtaxed.
