The taxes applicable to a promoter or Events manager may 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
- 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
Value Added Tax (VAT) – for players who generate income from events management that exceed 150,000,000 in a given year, are expected to collect VAT on every transaction that invoiced (EFRIS).
Where an events promoter receives sponsorship from any other company, he/ she must raise an invoice that is VAT inclusive through EFRIS to the sponsor.