By: Cank Media
Uganda’s creative industry has entered a new tax era, with musicians, performers and other public entertainers facing a 6% withholding tax on gross payments under the Income Tax (Amendment) Act, 2026.
The law was assented to by President Yoweri Museveni on 20 August 2026, but its provisions took effect from 1 July 2026, meaning the new measure applies from the beginning of the 2026/27 financial year.
For an industry that has grown beyond music and traditional stage performances into film, comedy, broadcasting, digital content and brand entertainment, the change raises an important question:
How much will the new tax affect Uganda’s creative economy and the income of artists?
What exactly is the 6% tax?
Under the new provision, a person who pays a public entertainer is required to withhold 6% of the gross payment. Importantly, the definition of a public entertainer is broad. It covers people who perform in public or before a camera or microphone for entertainment, artistic or similar purposes. The definition can include stage, radio, television and digital performers.
This means the discussion is no longer limited to musicians, actors, comedians, DJs, presenters, performers and some digital creators may also need to understand how the provision applies to their income and contracts.
Uganda’s creative economy is bigger than the stage
A government baseline study published through the Ministry of Gender, Labour and Social Development notes that formal statistics for the culture sector remain limited. However, available data show that selected music and film activities account for approximately 0.4% of service-sector GDP, equivalent to about 0.15% of national GDP.
The same study cites Uganda’s earlier cultural mapping data showing that more than 386,000 people were employed in the wider culture and creative industries. That figure covers much more than musicians. Uganda’s creative economy includes performing arts, film and television, publishing, visual arts and crafts, design, cultural tourism, digital media and other creative activities. The National Planning Authority has also cited more than 12,000 types of trade within Uganda’s cultural and creative industries, illustrating the breadth of the sector.
Public entertainment is already generating significant economic activity
Uganda’s Fourth National Development Plan documentation has cited public entertainment events generating more than UGX 106 billion in FY2021/22.
The figure provides an indication of why government increasingly views entertainment as an economic sector rather than simply a cultural activity.
Events create business for artists, promoters, venues, sound engineers, DJs, MCs, photographers, videographers, security companies, transport providers, food vendors and many other businesses.
A tax applied to payments within the sector therefore has implications beyond the artist receiving the performance fee.
What happens to an artist’s contract?
The new tax makes contract language more important.
Suppose an artist agrees to perform for UGX 10 million.
If the contract describes UGX 10 million as the gross performance fee, a 6% withholding would amount to UGX 600,000, leaving UGX 9.4 million payable before considering any other applicable obligations or expenses.
That creates an important commercial question:
Is the agreed fee a gross amount or a net amount that the artist expects to receive?
Artists, promoters and event organisers therefore have greater reason to clearly state tax responsibilities in written agreements.
It could accelerate professionalization
For years, many Ugandan artists have operated somewhere between being individual talents and business enterprises.
But the modern artist increasingly has a team.
There may be a manager, booking agent, producer, publicist, social media manager, accountant, lawyer, dancers, band members and other service providers involved in a single performance.
The new tax environment could therefore encourage more artists to treat their careers as structured businesses.
Proper invoices, contracts, receipts, bank records and tax documentation are becoming increasingly important.
URA’s entertainment-sector guidance already emphasises the importance of keeping records including contracts, invoices, bank statements, income statements, payroll information and other business documents.
The wider tax environment also matters
The 6% public-entertainer withholding tax is only one part of Uganda’s taxation framework.
URA states that entertainment businesses can also have income-tax obligations, while businesses meeting the applicable turnover thresholds may have VAT obligations.
URA currently states that VAT registration applies where gross annual income exceeds UGX 150 million, or UGX 37.5 million in a quarter, subject to the applicable rules. Tickets sold for particular performances attract 18% VAT inclusive.
This means artists and entertainment businesses need to distinguish between:
- Withholding tax;
- Income tax;
- VAT where applicable;
- PAYE where they employ staff; and
- Other business-related tax obligations.
The 6% deduction should therefore not automatically be interpreted as meaning that an artist has no other tax responsibilities.
Government is also investing in the creative sector
The tax conversation is taking place alongside government efforts to finance and professionalise the creative industry. In 2025, government moved to operationalise the UGX 28 billion Creative Uganda Revolving Fund (Uganda Broadcasting Corporation reported in January 2026).
According to the Uganda Registration Services Bureau, the structure included UGX 5 billion for musicians, UGX 5 billion for copyright support and UGX 18 billion for other creative SACCOs. The programme was designed to improve access to financing for creatives and creative enterprises.
What artists should be asking now
1. Is my performance fee quoted before or after tax?
2. Who is responsible for withholding and remitting the 6%?
3. Will I receive documentation showing the amount withheld?
4. Are my contracts properly written?
5. Am I keeping records of my income and expenses?
6. Do I understand my other tax obligations?
7. Is my creative business formally registered and professionally managed?
These questions may become just as important to an artist’s career as the next hit song or performance.