What the Income Tax (amendment) Bill 2026 Means for Entertainers & Event Promoters: the 6% Withholding Tax Explained

Uganda’s Parliament passed the Income Tax (Amendment) Bill 2026 in April 2026, introducing a new withholding tax on entertainers in Uganda that takes effect at the start of the 2026/27 fiscal year on 1 July 2026. The amendment places the obligation to withhold tax on anyone making payments to public entertainers, including musicians, comedians, DJs, dancers and other performing artists, at a rate of 6% for resident performers and 15% for non-resident performers. For event promoters, talent agencies, corporate sponsors and payroll teams across the country, the compliance window is narrow: contracts must be updated, remittance workflows configured and URA reporting processes established before the first payments of the new fiscal year are processed.

This guide provides a step-by-step compliance playbook covering who must withhold, how to calculate and remit, how to draft compliant contracts and how to manage cross-border performer engagements under the new regime.

Quick Summary, What Changed and Who This Affects

The Income Tax (Amendment) Bill 2026 inserts new withholding tax provisions targeting the entertainment sector. Below is an at-a-glance summary of the core changes:

• New withholding category. A 6% withholding tax applies to gross payments made to resident public entertainers for performances, appearances and related engagements.
• Non-resident rate. Payments to non-resident (foreign) entertainers are subject to withholding at 15% of the gross amount, consistent with the broader non-resident withholding framework under the Income Tax Act.
• Who must withhold. The promoter withholding obligation falls on any person making payments to entertainers, this encompasses event promoters, concert organisers, brands, corporate sponsors, talent agencies acting as payers, and any other entity disbursing performance fees.
• Effective date. The provisions come into force on 1 July 2026, the first day of Uganda’s 2026/27 fiscal year. All payments made on or after this date are caught by the new rules.

Immediate action for promoters: Update all performer contracts to reflect the withholding obligation. Configure your finance or ERP system to apply and track 6% (or 15%) deductions. Register a remittance workflow with URA and ensure your accounts team can generate withholding tax certificates for every payee before first payments are processed after 1 July 2026.

Legislative Background and Effective Date Under the Income Tax Amendment Bill 2026

The entertainment sector has historically operated with a high degree of informality in Uganda. Many performance fees have been paid in cash, outside the formal tax net. The Ministry of Finance, Planning and Economic Development proposed the entertainer withholding measure as part of the 2026/27 budget cycle to broaden the tax base and capture income at source, the point at which promoters disburse fees to performers.

Statutory Language in the Bill

The Income Tax (Amendment) Bill 2026 amends the Income Tax Act (Cap. 340) by inserting provisions that require every person making a payment to a public entertainer to withhold tax at the prescribed rate before disbursing the net amount. The Bill defines “public entertainer” broadly to capture musicians, comedians, actors, dancers, disc jockeys and other persons who perform for the public for a fee.

Timeline of Key Legislative Events

Who Must Withhold the Withholding Tax on Entertainers in Uganda?

The Bill places the withholding obligation on any person making a payment to a public entertainer. In practice, this captures a wide range of entities across the events ecosystem. Understanding exactly where your organisation sits in the payment chain is the critical first step toward tax compliance for events under the new regime.

Special Cases, Venue Operators, Ticketing Platforms and Streaming Payments

A venue operator that rents space to a promoter but does not pay performers directly will generally not be the withholding agent; the promoter retains that obligation. However, where a venue operates a revenue-share arrangement and pays a portion of gate receipts directly to the artist, the venue steps into the payer’s shoes and must withhold accordingly.

Digital ticketing platforms present a similar question. If the platform merely processes ticket sales and remits funds to the promoter, the promoter remains the withholding agent. If, however, the platform pays performers directly (as some international streaming services may), the platform could be treated as the payer. Industry observers expect URA to issue further guidance clarifying platform obligations as the digital entertainment economy in Uganda matures.

How Much to Withhold, Calculation Examples for the Withholding Tax on Performers

The withholding is calculated on the gross payment, that is, the total fee agreed before any deductions. It is not applied to the net amount after other charges.

Example A, Single Resident Performer

• Agreed performance fee: UGX 10,000,000
• Withholding tax at 6%: UGX 600,000
• Net payment to artist: UGX 9,400,000
• The promoter remits UGX 600,000 to URA and issues a withholding tax certificate to the performer.

Example B, Band with Agent

• Agreed fee to the band (via agent): UGX 25,000,000
• Agent’s commission (15% of fee, per private contract): UGX 3,750,000
• Withholding tax at 6% (on the gross UGX 25,000,000): UGX 1,500,000
• Net disbursement by promoter: UGX 23,500,000 (to agent or band, as contractually agreed)
• The agent’s commission is a private matter between the band and the agent. The promoter withholds 6% on the full gross payment to the entertainer(s).

Withholding on Advances, Deposits and Refunds

Where a promoter pays an advance or deposit before the performance date, the 6% withholding applies to each payment at the time it is made. If the event is cancelled and the fee (or part of it) is refunded, the promoter should adjust records and may claim a credit or refund from URA for overpaid withholding tax, supported by documentation of the reversal. The entertainer’s withholding tax certificate should be amended accordingly.

VAT is a separate obligation. If the entertainer is VAT-registered, the withholding tax is calculated on the fee exclusive of VAT. Promoters should request a proper tax invoice before making payment to determine the correct base.

PAYE vs Entertainer Withholding, Interaction and Reporting

Not every payment to a performer triggers the new 6% withholding. The correct tax treatment depends on whether the entertainer is engaged as an employee or as an independent contractor. Confusing the two regimes, PAYE vs withholding entertainers, can lead to double taxation or under-withholding, both of which carry compliance risks.

Decision flowchart (textual): Is the performer on your payroll and receiving a regular salary? → Apply PAYE. Is the performer engaged for a specific event under a performance agreement? → Apply 6% withholding (resident) or 15% (non-resident). Is there any doubt? → Obtain written confirmation of the performer’s tax residency and employment status before payment.

Where a resident entertainer also has an employment relationship with the payer (for example, a hotel employing a musician who also performs at external events organised by the same hotel), PAYE should cover income earned in the employment relationship while the 6% withholding applies to any separate performance fee paid outside the employment contract.

Contract Drafting and Commercial Allocations for Withholding Tax Compliance

Updating contracts is one of the most important practical steps for any entity affected by the new entertainers tax in Uganda. Clear contractual language prevents disputes over who bears the economic cost of withholding and establishes audit-ready documentation.

Model Clause A, Net-Payment Approach (Entertainer Bears Tax)

“The Fee stated herein is the gross performance fee. The Payer shall deduct withholding tax at the applicable rate (currently 6% for resident performers) from each payment and remit such amount to URA. The net amount after deduction of withholding tax shall be paid to the Performer. The Payer shall issue a withholding tax certificate to the Performer within 14 days of each payment.”

Model Clause B, Gross-Up Approach (Payer Bears Tax)

“The Payer agrees that the Performer shall receive the Fee stated herein as a net amount. The Payer shall gross up the payment to account for withholding tax at the applicable rate and shall bear the economic cost of such withholding. The Payer shall remit the withholding tax to URA and provide a withholding tax certificate to the Performer.”

Indemnity and Documentation Clauses

Where a talent agency makes payments to the entertainer on behalf of a promoter, include a clause confirming which party is responsible for withholding and an indemnity in favour of the promoter if the agency fails to withhold. For tax on talent agencies in Uganda, this is essential risk management.

For non-resident performers seeking treaty relief, the contract should require the artist to provide a valid tax residency certificate issued by the tax authority of their home jurisdiction, a copy of their passport and a completed invoice, all before the first payment is due.

Remittance, Filing and URA Practical Steps

Once withholding tax has been deducted, the payer must remit the amount to URA and file the appropriate return. The process follows the standard URA withholding tax workflow, now extended to cover payments to entertainers.

1. Register on the URA e-services portal (ura.go.ug) if not already registered as a withholding tax agent. Ensure your Tax Identification Number (TIN) is active and that the withholding tax obligation is reflected in your taxpayer profile.
2. Deduct the correct rate at the point of payment, 6% for resident entertainers, 15% for non-residents.
3. Complete the withholding tax return via the URA portal for the month in which the payment was made. Enter the payee’s TIN (or passport details for non-residents), the gross amount, the withholding rate and the tax withheld.
4. Remit the withheld amount to URA by the 15th day of the month following the month in which the payment was made. Use URA’s electronic payment channels (bank transfer, mobile money or direct debit).
5. Issue a withholding tax certificate to each payee for every payment. Retain copies for a minimum of five years.

Penalties and Late Payment Interest

Failure to withhold or remit triggers penalties under the Tax Procedures Code Act. Industry observers expect URA to enforce the new entertainer provisions rigorously given the public profile of the amendment. Penalties may include a percentage surcharge on the unpaid amount plus interest for each month of delay. In serious cases, the Commissioner General may pursue personal liability against the responsible officer. Promoters should remediate any late remittances immediately and consider voluntary disclosure where errors are identified.

Cross-Border Performers and Treaty Relief, the 15% Withholding Rate

Foreign artists performing in Uganda are subject to a 15% non-resident withholding tax on the gross payment, as provided under the Income Tax Act’s non-resident withholding provisions (Section 83). This rate applies to every payment, performance fees, appearance fees, per diems characterised as part of the engagement fee and prize money, unless reduced by an applicable double taxation agreement (DTA).

Uganda has DTAs with a number of countries. Where a treaty provides a reduced rate or an exemption for entertainers (some treaties include a specific “artistes and sportspersons” article), the promoter may apply the reduced rate only if the performer provides a valid tax residency certificate from their home jurisdiction before the payment date.

Practical steps for promoters booking foreign acts:

• Request the performer’s tax residency certificate at the contracting stage, not after the event.
• Check whether Uganda has a DTA with the performer’s country of residence and review the entertainers/artistes article.
• If the DTA reduces the rate, withhold at the treaty rate and retain all supporting documentation.
• If no DTA exists or the documentation is not provided in time, withhold at the full 15%.
• For large payments (above UGX 50,000,000), consider obtaining advance URA confirmation of the applicable rate.

Accounting, Bookkeeping and Sample Entries

Promoters should record withholding tax entries in their books at the time of each payment. Below is a sample set of journal entries for a single resident performer engagement:

Maintain a withholding tax register, a simple spreadsheet or CSV file, listing every payment, the payee’s name and TIN, the gross amount, the withholding rate, the tax withheld, the date of remittance to URA and the withholding tax certificate number. This register serves as the primary audit trail and should be reconciled monthly.

Compliance Checklist and Practical Next Steps for Promoters

Use this numbered checklist to prepare for the withholding tax on entertainers in Uganda before 1 July 2026:

1. Review and amend all performer and talent-agency contracts to include withholding tax clauses (use Model Clause A or B above).
2. Update your finance or ERP system to calculate and record 6% and 15% withholding deductions automatically.
3. Register as a withholding tax agent on the URA e-services portal (if not already registered).
4. Train cashiers, ticketing staff and accounts payable teams on the new obligation and the required documentation.
5. Create a withholding tax register (spreadsheet or CSV) for ongoing tracking and monthly reconciliation.
6. Set calendar reminders for the 15th of each month to remit withheld amounts to URA.
7. Establish a document checklist for non-resident performers: tax residency certificate, passport copy, invoice and DTA review.
8. Brief event operations staff on the need to obtain performer TIN details before disbursing any payment.
9. Schedule a quarterly internal audit of withholding tax records to catch errors before URA review.
10. Engage qualified tax counsel to review your first post-1 July 2026 withholding return for accuracy.

Sources

1. Parliament of Uganda, Bills and Official Publications
2. Uganda Revenue Authority (URA)
3. Ministry of Finance, Planning and Economic Development (Uganda)
4. PwC, Tax Summaries (Uganda)
5. CEO East Africa
6. Matooke Republic
7. Daily Monitor (Uganda)
8. Watchdog Uganda
9. OtongMichaelFavour, Creative-Sector Guidance