URA Commissioner General Clarifies PAYE, Vehicle Transfer Procedures, and NIN Tax Reforms

Kampala – In the latest edition of the New Vision’s weekly ‘ASK URA’ feature, Uganda Revenue Authority (URA) Commissioner General John Musinguzi addressed a wide range of reader questions, offering clarity on tax changes, common filing errors, and a major upcoming policy shift regarding tax identification.

PAYE Changes and Withholding Tax Calculations
Musinguzi outlined the new Pay As You Earn (PAYE) rates effective July 1, 2026, noting that the changes were announced in August 2025. He clarified that individuals earning up to Shs 1,000,000 per month are exempt, while new rates apply to higher income brackets.

Addressing questions on Withholding Tax (WHT), he provided a detailed breakdown of how to calculate WHT when Value Added Tax (VAT) is included in the total invoice. He noted that the system automatically computes this correctly, but provided a manual example to guide taxpayers, emphasizing that WHT is deducted from the net value of the invoice excluding VAT.

Vehicle Ownership Transfers and Taxpayer Support
The Commissioner detailed the correct procedures for transferring motor vehicles, which involves logging into the URA portal, registering the buyer and seller, generating a TIN, and submitting the required forms to the Chief Licensing Officer (CLO) at the Ministry of Works and Transport. He also clarified the timelines, noting that private motor vehicles must be transferred within 14 days of sale, while commercial vehicles have a 45-day window.

To assist taxpayers, Musinguzi highlighted various URA support channels, including toll-free lines (0800-117-000, 0800-211-000), email (services@ura.go.ug), and social media platforms, emphasizing that URA staff will not solicit bribes and encouraging taxpayers to report such incidents.

NIN Reforms and Data Privacy Concerns
The article also detailed Cabinet’s approval of the National Identification Numbers (NIN) as the default Tax ID for taxpayers. This reform, effective July 1, 2026, aims to link economic activities to tax records, improving accuracy and expanding the tax base by identifying individuals with undeclared income and those in the informal sector.

However, privacy and technical experts, including ICT lawyer Ronnie Tusabe and tax policy expert Albert Baine, have raised concerns. They warned that linking NINs to tax records could expose people to phishing attacks and identity theft. Tusabe noted that while URA needs data for accurate tax profiling, the collection, sharing, and management of NIN data must be strictly regulated to prevent breaches.

Despite these concerns, Musinguzi assured the public that the NIN will make tax administration more efficient and help curb under-declaration of income, as all economic activities will be linked back to an individual’s identity.