Overview of the Entertainment Sector

What is Entertainment?

Entertainment is a form of activity that holds the attention and interest of an audience or gives pleasure and delight. Public entertainment events include activities like concerts and performances. 

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The key players in this industry include:

Promoters/ event managers, VJs, DJs, MCs, Song writers, poets, musicians, models, film actors and producers etc.

 

All persons earning income from entertainment business are obliged to register for taxes with URA. Every player in the entertainment sector in Uganda is required to formalize through the following agencies.

  • Ministry of Gender, Labor and Social development
  • Uganda Revenue Authority (URA) for taxes i.e. acquiring a TIN
  • Have membership to an association you subscribe to e.g. Uganda Musician Association, Uganda Promoters Association e.t.c.
  • For non-individual you can incorporate your entity with Uganda Registration Services Bureau (URSB).

For individual

  • National ID or any other two of the following valid identification documents;  Passport, Driving permit, Voter’s card, Village ID, Employment ID, Refugee ID, recent Bank statement, Work permit, financial card, Visa, NSSF card etc.
  • Certificate of registration (incase you are in business)
  • Statement of particulars and partnership deeds (incase of a partnership)

For non-individual

  • Company Form 20
  • Certificate of incorporation

Click here for details on requirements for registration

 

Click here for your rights as a taxpayer.

Click here for your obligations as a taxpayer.

It is very important for you to keep proper records of all your business transactions for at least five years after the end of the tax period to which they relate for future reference.

These include;

  • Income statement (List of Receipts and Payments),
  • balance sheet,
  • payroll,
  • import schedules,
  • contracts,
  • bank statements,
  • appointment letters,
  • bills (e.g. utility bills),
  • stock records,
  • Asset registers and many other records and/or documents relevant to

your business such as receipt books, invoices, debtors and creditors.

Click here for information on business record keeping.

What kind of business records do I have to keep for tax purposes?

It is very important for you to keep proper records of all your business transactions for at least five years after the end of the tax period to which they relate for future reference.

These include;

  • Income statement (List of Receipts and Payments),
  • balance sheet,
  • payroll,
  • import schedules,
  • contracts,
  • bank statements,
  • appointment letters,
  • bills (e.g. utility bills),
  • stock records,
  • Asset registers and many other records and/or documents relevant to

your business such as receipt books, invoices, debtors and creditors.

Click here for information on business record keeping.

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

  • 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.

Value Added Tax (VAT) – if your gross annual income exceeds UGX 150,000,000 or UGX 37,500,000 in a given quarter, you will be required to register and invoice VAT inclusive on each transaction (EFRIS)

Please note: All tickets sold for a particular performance attract 18% (VAT inclusive)

Click here for more information on VAT 

 

These returns are filed like any other Income tax returns

Click here for information on how to file your returns.

After filing a return, you’re required to pay the resultant tax using any of the available payment platforms e.g. banks, mobile money, EFT, RTGS, VISA, Mastercard, USSD code (*285#) etc.

Please note: the due date for payment of tax is the same as that of return filing.

Click hereto register a payment

 

In case you cannot register online, visit the nearest URA office for assistance or call the toll-free line 0800117000/0800217000 or WhatsApp: 0772140000

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