Government explains tax on properties, remittances of Ugandans abroad

The Ugandan government has come out to clarify concerns raised by Ugandans living abroad regarding the taxation of their properties and income sent back home, following complaints that the practice amounts to double taxation.

The matter came up during a recent meeting of the Public Accounts Committee (Central Government) of Parliament, where legislators questioned officials from the Ministry of Foreign Affairs over growing dissatisfaction among members of the Ugandan diaspora.

Committee chairperson Goretti Namugga tasked the ministry’s Permanent Secretary, Vincent Bagiire Waiswa, to explain the position of government after reports that the Uganda Revenue Authority (URA) continues to tax properties owned by Ugandans abroad and the money they repatriate to the country.

According to Bagiire, concerns intensified after URA issued an advisory suggesting that members of the Ugandan diaspora could be taxed on their property holdings in Uganda.

He explained that the issue was also raised during the government’s annual diaspora convention held in December last year, where officials invited URA to clarify the matter directly to Ugandans living abroad.

During that meeting, URA delivered a presentation explaining the taxation framework. However, Bagiire noted that while some diaspora members were satisfied with the explanation, others remained unconvinced and requested simpler guidance on the matter.

“As a result, we agreed that URA should simplify the information they presented so that it clearly explains what exactly will be taxed,” Bagiire told the committee.

He added that the simplified guidance had not yet been shared with the Ministry of Foreign Affairs but said the ministry would remind the tax body to expedite the process.

During the same committee session, Richard Wanda, Member of Parliament for Bungokho Central County, clarified that Uganda’s existing tax laws already address concerns about income earned abroad.

According to Wanda, income that has already been taxed in the country where it was earned should not be taxed again in Uganda.

“If you earn a salary and pay tax in the country where you earned it from, it is exonerated from tax here because you have already paid tax on it,” he explained.

He added that the challenge arises when some Ugandans abroad fail to file tax returns with URA, which is a legal requirement for all citizens.

Wanda said that when returns are not filed, URA may interpret the funds sent into the country as untaxed income.

He advised that Ugandans abroad should declare their earnings and provide proof that taxes were already paid in the countries where the income was generated.

“If it is employment income, you simply need to show that you paid tax on it and URA will not tax it again,” he said.

For business income, he noted that if taxes were partially paid abroad, URA may only charge the difference between what was paid and what would have been due under Uganda’s tax system.

Lawmakers said clearer communication from URA will be crucial in addressing confusion among diaspora communities, many of whom continue to invest heavily in property and businesses back home.