Home » Entertainment » URA Speaks Out On Taxation Saga In Entertainment Industry
URA Speaks Out On Taxation Saga In Entertainment Industry

URA Speaks Out On Taxation Saga In Entertainment Industry

Uganda Revenue Authority (URA) has responded to the ongoing taxation complains in the entertainment industry. Many have been calling URA out to revise its taxation policy on artists and comedians.

The tax authority has been at the center of criticism. This came following a plea from comedian Patrick Salvador to have the taxation body revise its taxation rates on artists.

The comedian claimed that URA exorbitantly charges entertainers, referring to fellow comedian Alex Muhangi, who halted his weekly comedy-store shows due to alleged taxation.

The revenue body has now come out to clarify the method used to tax artists. According to URA Spokesperson Ibrahim Bbossa, artists are required to pay income tax. This is on all earnings, and 6% of their hiring fee is withheld for taxes.

“When hiring local artists, 6% of their fee is withheld for taxes. For international artists, this rate is 15%, and it must be remitted to URA before their departure. In addition, a 6% tax is applicable for expenses like chair rentals exceeding 1 million shillings,” he said in a post on X.

Bbossa added that 18% VAT (Value Added Tax) is added to all sales. This includes event tickets, special access, sponsorships, and all other services offered at the event.

“Freelancers will need to pay a withholding tax of either 6% or 15%, depending on whether they are local or international artists. This also includes adding 18% VAT to ticket sales and services offered at events, which is a crucial element in pricing strategies,” he added.

URA also says that artists earning over 235,000 UGX monthly from employers like record labels are subject to Pay As You Earn (PAYE) tax deductions.

Freelancers on the other hand must account for a 6% tax withheld by payers for performances or services.

Artists are also required to file an income tax return based on profits made. If they delay, one may be fined and/or more interests may be charged.

Check Also;

This is not a Paywall, but Newslex Point's journalism consumes a lot of time, hard-work and money. That's why we're kindly requesting you to support us in anyway they can, for as little as $1 or more, you can support us .

Please use the button below to contribute to Newslex Point, Inc. using a credit card or via PayPal.

Donate Button with Credit Cards

Comments

comments

Loading...

About Kyeyune Andrew Jonathan

Loading...
x

Check Also

Twitter users: Sheilah Gashumba Questions The Sensitivity Of Ugandan Journalists

Sheilah Gashumba Reveals Why She Doesn’t Miss Working In Television

Media personality and social media influencer Sheilah Gashumba has revealed why she doesn’t miss working ...