TAKEAWAYS

• Government has proposed a 6% withholding tax on entertainers’ concert and show earnings
• The tax will affect musicians, comedians, actors and other paid performers
• Event organisers will deduct the tax before paying artists

Uganda’s entertainment industry could soon face a new tax deduction after government proposed a 6% withholding tax on income earned by public entertainers from concerts and live shows. The proposal was tabled by State Minister for Finance (General Duties), Hon. Henry Musasizi, as part of the Income Tax (Amendment) Bill for the 2026/27 financial year.

According to Musasizi, the tax will apply to musicians, comedians, actors and other performers who earn directly from public shows and paid appearances.

“We propose to introduce a withholding tax of 6% on public entertainers.”

He explained that the money will be deducted before artists receive their payments, meaning event promoters and organisers will be required to remit the tax directly to the Uganda Revenue Authority.

Using musicians and comedians as examples, Musasizi said the government wants to formally capture earnings from concerts and comedy shows that previously went untaxed.

“When you are doing comedy, we deduct 6% withholding from you.”

The minister noted that the measure is intended to improve tax compliance in the fast-growing entertainment sector, where many artists now earn heavily from concerts, comedy nights, hosting gigs and public performances.

If passed by Parliament, the new law will mean entertainers take home 94% of their agreed performance fee, with the remaining 6% sent to tax authorities at source.

The proposal is already likely to spark debate within Uganda’s creative industry, with some artists expected to question whether the tax is fair, especially at a time when event production costs continue to rise. However, this comes at the back of the breakthrough of the copyright law which was passed by Parliament a few weeks ago. Artists have fought for long to have it passed and believe it’s the key to their rewards from their works.

Still, government maintains the move is part of broader efforts to widen the tax base and ensure every income-earning sector contributes to national revenue targets.