KAMPALA. Individual taxpayers in Uganda will no longer need separate Tax Identification Numbers (TINs), following a Cabinet decision to adopt the National Identification Number (NIN) as the tax identifier for individuals.
The change was announced on Tuesday by ICT and National Guidance Minister Justine Kasule Lumumba, who said the decision is part of government efforts to integrate national identification and tax administration systems.
Under the new arrangement, the NIN issued by the National Identification and Registration Authority (NIRA) will also serve as an individual’s TIN when accessing tax-related services.
This means an individual will use one identification number for both national identification and tax purposes, replacing the current arrangement in which NIRA issues the NIN while the Uganda Revenue Authority (URA) issues a separate TIN.
The reform is expected to simplify tax registration and reduce duplication of taxpayer information across government systems.
What happens to existing TINs?
For Ugandans who already have a TIN, the change does not require them to immediately abandon the number or apply for a new one.
URA has been working to link existing taxpayer records to taxpayers’ NINs as part of the transition to the integrated system.
In May, the tax body asked taxpayers to update their registration details and link their existing tax records to their NINs.
The exercise is intended to ensure that taxpayer records are matched with the correct national identity details before the new arrangement is fully operational.
What if you do not have a TIN?
Individuals who do not already have a URA-issued TIN will use their NIN as their tax identification number under the new system.
The move is expected to remove the need for individuals to undergo a separate registration process with URA solely to obtain a TIN.
The NIN will consequently become the key identifier used when an individual interacts with government tax services.
However, the physical National Identification card should not be confused with the NIN. The card remains the physical document used to prove identity, while the NIN is the unique number attached to an individual’s national identity.
Businesses remain separate
The new arrangement applies to individual taxpayers and does not eliminate separate registration identities for businesses.
URA has previously required taxpayers to link their records to a NIN or Business Registration Number (BRN), depending on whether they are individuals or registered entities.
The government says integrating the identification and tax systems will also address weaknesses associated with the previous registration process, including outdated, duplicated or inconsistent taxpayer records.
By using the NIN as the tax identifier, authorities expect to establish a more consistent record for each individual taxpayer and improve information sharing among government agencies.
Officials further believe the system will make it easier to identify taxpayers, simplify tax administration and improve compliance.
The integration is also expected to strengthen revenue collection by helping government identify taxpayers more accurately and reduce potential revenue leakages.