Uganda’s entertainment industry is entering a new tax environment following the introduction of a six percent withholding tax on payments made to public entertainers.
The measure has attracted attention because it affects an increasingly large creative economy involving musicians, performers, influencers, presenters, content creators and other people who earn income through entertainment.
The tax change is part of the Income Tax (Amendment) Act 2026. The legislation was assented to by President Yoweri Museveni on August 20, 2026, while its commencement date is July 1, meaning measure falls within the 2026/27 financial year.
Under the new arrangement, a person or organization paying a public entertainer is required to withhold six percent of the gross payment.
Uganda Revenue Authority guidance already provides for withholding tax on payments to local public entertainers, and the 2026 amendment gives the obligation a clearer statutory basis.
The definition of a public entertainer is broad. It can cover people performing in public of before a camera or microphone for entertainment, artistic or similar purposes.
This means the tax discussion goes beyond traditional musicians performing on a stage. Depending on the circumstances, digital performers, influencers and other creative workers can also fall within the scope of the rules.
For example, if an entertainer receives a gross payment of Shs1 million that is subject to the six percent withholding tax, Shs60,000 would be withheld and Shs940,000 would remain payable begore considering any other applicable obligations. The withheld amount is paid to the tax authority in accordance with the applicable rules.
Supporters of stronger tax compliance argue that the entertainment industry is growing commercial sector and should contribute to national revenue like other areas of the economy.
A clear tax system can also formalize businesses, improve record keeping and create a more structured relationship between creators, promoters and government agencies.
However, some people in creative industry are concerned about the impact on artists whose earnings can already be unpredictable. Musicians and performers may spend heavily on production, transport, promotion, management and other costs before receiving income.
A deduction from gross payment therefore feels different from taxation based on profit after allowable expenses.
The debate is particularly relevant as Uganda’s creative economy expands through concerts, television, radio, social media, YouTube and other digital platforms. More creators are turning their audience into businesses, making tax compliance an increasingly important issue.
Creators and businesses should therefore keep proper records of payments, contracts and expenses and seek professional tax advice where necessary. Uganda Revenue Authority information indicates that entertainers can also have other obligations depending on their income, business structure and activities.
The wider question is how Uganda can balance revenue collection with the need to support a young and growing creative industry economy. The entertainment sector creates jobs, promotes culture and generates income for artists, technicians, event organizers, venues and many supporting businesses.
As the new tax regime takes effect, the industry will likely continue discussing whether the six percent withholding requirement is manageable, how it should be administered and how government can make compliance easier for creators.