Uganda’s entertainment industry has entered a new tax era, with artists, performers and the businesses that hire them facing a more clearly defined obligation under the Income Tax (Amendment) Act 2026.
President Museveni assented to the legislation on August 20. Among its changes is a statutory six percent withholding tax on payments made to public entertainers. Although presidential assent came in August, the law’s commencement date is July 1, placing the new measure within the 2026/27 financial year.
At first glance, six percent appears to be a relatively small deduction; yet, for Uganda’s increasingly commercial creative sector, the change could affect much more than the amount an artist takes home after a performance.
It touches on the way artists negotiate fees, how promoters budget concerts, how brands contract entertainers and how emerging creators manage increasingly commercial careers.
It also signals a broader shift: Uganda’s tax framework is beginning to recognise an entertainment economy that stretches beyond the traditional concert stage.
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