The taxes applicable to production company/studio business include the following;
Income tax – applies to all, whether individual or non-individual player.
Please note: The rate applicable for income tax for non-individual clients is 30% of the entity’s chargeable income (gross income less allowable deductions). However, individual income tax depends on the bracket in which the individual falls.
Click here for individual income tax rates
It’s a tax imposed on non-individual players in the sector at a standard rate of 30%.
Value Added Tax (VAT)
VAT is a consumption tax charged at a rate of 18% on all supplies made by taxable persons i.e. persons registered or required to register for VAT purposes. The threshold for VAT registration is an annual turnover of over 150 million, or 37.5 million in the first 3 consecutive months.
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Please note: All VAT registered taxpayers are obliged to register for EFRIS and issue e-invoices
Click here for information on how to register for EFRIS
- Withholding tax on suppliers – If you’re a designated withholding tax agent, you are expected to withhold at a rate of 6% from your suppliers whose transaction amount exceeds UGX 1,000,000 in a single transaction
- Withholding tax on payments to non – resident public entertainers –this tax is charged at a rate of 15% of the gross amount of the payment derived by the non – resident public entertainer. The tax is withheld and paid before the non-resident entertainer leaves the country.
- Withholding tax on payments to local public entertainers – this tax is withheld at the rate of 6% on the gross amount and remitted to URA
Click here for more information on Withholding tax.
Pay As You Earn (PAYE)
This tax applies to a sector player who has employees (administrative or causal laborers) that earn an aggregate in excess of Ugx. 235,000 per month. This form of tax is withheld every month.
Click here for the PAYE rates