Uganda | Tax Reforms Enacted for FY 2025/26

Uganda | Tax Reforms Enacted for FY 2025/26

The President has officially signed into law a series of tax amendment acts, introducing key fiscal changes for the 2025/26 financial year.
The following tax laws have been amended:
  1. Income Tax (Amendment) (No.2) Act, 2025 – no changes impacting payroll;
  2. Value Added Tax (Amendment) Act, 2025;
  3. Excise Duty (Amendment) (No.2) Act, 2025;
  4. Tax Procedures Code (Amendment) Act, 2025 – see key changes affecting payroll and employers below;
  5. Hides and Skins (Export Duty) (Amendment) Act, 2025;
  6. Stamp Duty (Amendment) Bill, 2025; and
  7. External Trade (Amendment) Act, 2025.
Under the Tax Procedures Code (Amendment) Act, 2025, the government has approved the following as acceptable forms of a Tax Identification Number (TIN):
  1. The National Identification Number (NIN) issued by the National Identification Registration Authority (NIRA) under the Registration of Persons Act for individuals.
  2. A registration number issued by the Uganda Registration Services Bureau (URSB) for non-individuals.
  3. A Tax Identification Number (TIN) issued by a tax authority of another country with which Uganda has entered into a tax treaty or agreement for the exchange of information.
Additionally, the government has introduced a tax relief measure allowing for the waiver of interest and/or penalties on outstanding principal tax balances as of 30 June 2024. To qualify, taxpayers must fully settle the principal amount by 30 June 2026. If only part of the principal is paid, the waiver will apply on a pro rata basis.
 
These changes under the Tax Procedures Code (Amendment) Act, 2025, were signed into law on 30 June 2025 and took effect on 1 July 2025.
 
We will provide further guidance on how the new TIN requirements will apply to payroll statutory returns once more information becomes available.
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