JUNE 2026 – UGANDA
KEY PAYROLL, TAX AND EMPLOYMENT UPDATES
It is important that employers note the following:
Key tax and employment changes employers need to know
Ugandan employers and businesses face several important compliance developments in 2026, including mandatory taxpayer registration updates, significant tax changes effective 1 July 2026, and a new Employment Law framework. Employers should review payroll, HR, tax and workforce management processes to ensure compliance.
Mandatory taxpayer registration update: TIN Replaced by NIN/BRN
The Uganda Revenue Authority (URA) has issued a mandatory taxpayer registration update requiring all registered taxpayers to update their registration details on the URA portal with immediate effect.
- From 21 May 2026, the traditional Tax Identification Number (TIN) is being replaced by:
- the National Identification Number (NIN) for individuals; or
- the Business Registration Number (BRN) for non-individual entities.
- Taxpayers are required to verify and update:
- NIN or BRN
- active telephone number(s)
- physical address
- nature of business
- other prescribed registration particulars
- URA systems will block transactions until records are updated. It affects:
- PAYE filing
- tax payments and refunds
- tax clearance certificates
To view the URA public notice, follow the link.
Income tax changes
The Income Tax (Amendment) Bill, 2026 has been passed by Parliament and is awaiting Presidential assent.
- Only once assented and gazetted will it become law.
- The changes are expected to take effect from 1 July 2026.
Key proposed payroll-related changes:
- Revised PAYE bands: Includes an additional 10% tax on income exceeding UGX 120 million.
New withholding tax obligations
The Bill introduces withholding tax provisions covering:
- Interest paid by resident companies to foreign financial institutions.
- Commissions relating to telecommunications retail services, mobile network services and mobile
money services. - Gaming and betting winnings.
- Payments for purchases of non-business assets.
- Payments made to public entertainers.
To view the Income Tax (Amendment) Bill, 2026, follow the link.
New Employment Law 2025
The Employment (Amendment) Act, 2025 has reportedly received Presidential assent, but its
commencement date has not yet been gazetted. Employers should therefore use this period to review contracts, policies and HR procedures in preparation for implementation.
Key changes for private-sector employers:
The Employment (Amendment) Act, 2025 has been enacted but is not yet in force pending gazetted commencement. The full text is not yet readily available in a consolidated public format.
