For years, Ugandans have had to keep track of two different identification numbers for two closely related purposes. The National Identification Number (NIN), issued by the National Identification and Registration Authority (NIRA), identifies an individual as a citizen or resident, while the Taxpayer Identification Number (TIN), issued by the Uganda Revenue Authority (URA), identifies a person for tax purposes.
Cabinet has approved the use of the NIN as the tax identification number for individual taxpayers, marking a significant shift in how Uganda identifies and manages taxpayers. The decision is part of government’s broader effort to integrate public databases, improve the accuracy of taxpayer information and strengthen domestic revenue mobilisation.
At first glance, the change may appear to be a simple administrative adjustment: one number replacing another. But its implications are much broader.
The reform means that an individual’s identity for national purposes and their identity for tax administration will increasingly be tied to the same number. Rather than obtaining and maintaining a separate TIN, an individual taxpayer will use their NIN when interacting with the tax system. This should make tax registration and administration simpler. It also has the potential to reduce duplication and inconsistencies in government records.
Where different institutions previously held separate information about the same individual, linking systems through a common identifier can make it easier to verify and update taxpayer information.
For government, that integration has a more important benefit: visibility. A tax system works best when the authority can accurately establish who is earning income, conducting business and carrying out taxable transactions. A common identifier makes it easier to connect information held across different government systems and, in turn, gives the tax authority a clearer picture of economic activity. That is particularly important as Uganda moves towards digital tax administration.
URA has already been requiring taxpayers to update their registration details with their NIN or Business Registration Number (BRN).
The latest Cabinet decision, therefore, builds on a transition that has already been taking place rather than introducing a new concept. There is, however, an important distinction for businesses.
The NIN applies to individual taxpayers. Companies and other non-individual entities will be identified using the Business Registration Number (BRN) within the new framework. A company therefore does not become an individual taxpayer simply because its directors or shareholders have NINs.
The company remains a separate legal entity with its own tax obligations and identification. This distinction matters for entrepreneurs who operate businesses in their own names as well as those who have incorporated companies. The way a business is legally structured will continue to determine how it is registered and taxed.
For individuals already registered with URA, the change should not be interpreted to mean that their previous tax records, obligations, or history disappear.
Existing taxpayer information will need to be aligned with the new identification framework. Taxpayers should therefore ensure that their NIN is correctly reflected in their URA records rather than assuming that no action is required because they already possess a national ID.
The reform also raises an important issue that businesses often overlook: the quality of their information.
As Government systems become increasingly integrated, inconsistencies in taxpayer records can become more significant.
A taxpayer whose name, telephone number, physical address, business activity, or identification details are outdated may face difficulties when accessing tax services or completing transactions.
Review records
Businesses should, therefore, treat this transition as an opportunity to review their records across the board.
Are the details registered with Uganda Revenue Authority (URA) accurate? Does the taxpayer information correspond with the business registration records?
Are changes in ownership, address, or business activity properly reflected? Are the records used for invoicing and other tax compliance processes consistent with the information held by Government?
Uganda’s tax administration is no longer operating solely through traditional paperwork.
Digital systems such as the Electronic Fiscal Receipting and Invoicing Solution (EFRIS) are creating more electronic records of business transactions. When these systems are combined with more integrated taxpayer identification, the government gains greater capacity to connect taxpayers with the economic activities associated with them.
Better identification and more accurate information can contribute to a tax system that is easier to administer and potentially more transparent. For taxpayers who operate informally, under-declare income or maintain inconsistent records, the implications are different.
A more connected system can make it increasingly difficult for economic activities to remain disconnected from the individual or business responsible for them.
This is why the NIN reform should not be viewed merely as a change of numbers. It represents a broader change in Uganda’s approach to tax administration, from a system that relies heavily on separate registrations and records towards one that increasingly uses integrated digital information.
For ordinary Ugandans, the immediate practical message is straightforward: keep your national identification details accurate and ensure that your tax records are properly updated.
For entrepreneurs and companies, maintaining accurate registration information, keeping proper financial records and ensuring consistency across government systems are becoming equally important.
The number may be changing, but the underlying responsibility remains the same: taxpayers must understand their obligations, keep accurate records, and ensure that the information held by government reflects their actual economic activities.
For individuals, the NIN is becoming the key to that system, and for businesses, the BRN will serve the same purpose.
For everyone operating in Uganda’s formal economy, the future of tax administration will be more digital, more integrated, and far more data-driven.
Dedan Mutatinensi is a tax expert at Demo Consult.
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