Uganda Revenue Authority Moves from TIN to NIN, Offers Three‑Year Tax Exemption for Start‑ups.
Kampala, Uganda
Uganda’s tax authority has announced a major policy shift: from July 1, 2025 all business registrations will use the National Identity Number (NIN) instead of the Tax Identification Number (TIN), and start‑ups with capital of UGX 500 million or less will qualify for three years’ income tax exemption as part of the effort to boost innovation and formalisation.
The change means that new businesses will no longer register for TIN separately but will link their NIN directly to tax status, simplifying the process and integrating identity and tax databases.
In addition to the identity switch‑over, the tax authority announced an incentive: enterprises registered after July 1 2025 with capital not exceeding UGX 500 million will enjoy a three‑year income‑tax holiday, aimed at encouraging start‑ups and formalising micro‑businesses.
Officials say this dual reform will help reduce compliance burdens, increase the tax base, and support the digital economy. Critics caution that effective implementation and monitoring will be key to preventing misuse.
For Kampala‑based entrepreneurs and informal‐sector traders, the move signals recognition of their role in the economy — but the actual benefits will depend on how smoothly the NIN integration proceeds and how many businesses qualify for the start‑up exemption.
Context & takeaway:
In a year when Uganda is pushing harder on youth employment, innovation and economic inclusion ahead of elections, this tax reform is a strategic lever. For The Urban Gazette’s business‑readers: now is a good time to reassess business registration status, check whether your capital qualifies for the exemption, and update legal‑/tax‑advisor relations accordingly.
