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Taxes Ugandan artistes will pay starting 2023

by Editorial Team
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By Alfred Byenkya

The Uganda Revenue Authority (URA) recently listed taxes that performing artistes and promoters are supposed to pay.

According to a statement, URA explained a number of taxes that the creative industry has to pay while doing their entertainment business in 2023.

The taxes include withholding tax of 6% per booking of the performer,18% Value added tax (VAT) on each ticket sold at the entrance of the entertainment venue and the annual income tax that business pay after filing their annual returns.

“The person that will be hiring artistes on their wedding and kwanjula events, they will pay withholding tax of 6% of the amount of money paid to the performer. For example, if an artiste is paid sh10m to perform, the one who has hired him of her, will pay withholding tax of shs.600,000.

They further said the withholding tax should be withheld within 15 days after the end of the month in which the payment subject to withholding tax was made.

Another tax they talked about in the communication to artistes and promoters was Value Added tax (VAT) of 18% per ticket sold at an event.

“If a promoter charges sh10,000 per show, he or she is supposed to pay VAT of sh1,800 per ticket. If the show managed to attracted 10,000 people, it means the promoter will pay VAT of sh1.8m to URA.”

To make sure that artistes and promoters comply with this directive, Uganda Revenue Authority wrote to the inspector general of Police and told him not to okay shows of promoters and artistes without Tax Identification numbers (TIN).

The development was announced by police spokesperson Fred Enanga at a press conference held at the police headquarters on Monday, January 16, 2022.

The Police also directed promoters to show the Police the residential areas and locations where the booked musicians reside before being allowed to hold events.

Speaking on the different entertainment shows on radios and televisions, the promoters that included Balaam Barugahara of Balaam Promotions and Marketing Agency, as well as Juma Balunywa of Balunywa Promotions said they have been paying these taxes because they have do their business under their registered companies and urged promoters that don’t do the entertainment business legally to so as soon as possible.

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