Uganda’s entertainment industry is set for a significant regulatory shift as the government moves to tighten tax compliance within the sector. Beginning in the 2026/27 financial year, all promoters of public entertainment events will be required to directly withhold tax from payments made to artists.
Under the new directive, promoters must deduct 6% withholding tax from payments to local artists and entertainers, and 15% from international performers. While these tax rates remain unchanged, the key development is the reassignment of responsibility—placing promoters at the center of tax collection, a role they previously did not hold.
The reform targets long-standing gaps in Uganda’s largely informal entertainment economy. Historically, many कलाकार transactions have been conducted in cash or through loosely documented agreements, making it difficult for authorities to track income and enforce tax obligations. As a result, compliance has been inconsistent.
According to the Uganda Revenue Authority (URA), the move is designed to streamline tax enforcement, formalize industry operations, and improve revenue collection. The measure is projected to generate approximately Shs4.2 billion in additional government income.
This development builds on earlier efforts by URA to bring structure to the entertainment sector. In January 2023, all stakeholders—including artists, promoters, event organizers, and venue owners—were required to register for Tax Identification Numbers (TINs). This registration laid the groundwork for enforcing both withholding tax and Value Added Tax (VAT).
Currently, resident entertainers are subject to a 6% withholding tax, while non-residents pay 15%. Public entertainment events also attract an 18% VAT, and operators earning at least Shs150 million annually are mandated to register for VAT.
While the new policy does not alter existing tax rates, it significantly expands enforcement by designating promoters as withholding agents. This effectively closes loopholes and ensures that a broader portion of the entertainment economy is captured within Uganda’s formal tax system.
Industry players are now expected to adjust their payment structures and accounting practices ahead of implementation, as compliance shifts from voluntary declaration to mandatory deduction at source.
