A heated debate is unfolding in Uganda’s creative industry over the 15% withholding tax levied on entertainers’ earnings — a move that’s dividing artists, managers, and industry bodies. The tax, applied to payments for performances, appearances, and other entertainment services, means promoters and clients must deduct 15% at source before paying creatives. For many artists, that’s a significant cut from already tight performance fees.
Why Now? Copyright Law and New Government Funding
The tension comes at a critical moment. Two major developments are shaping the conversation:
- The Copyright Amendment Bill — designed to strengthen creators’ rights and royalty collection — is awaiting the President’s signature. Many artists hoped the law would boost earnings, but the withholding tax debate has surfaced before the bill becomes operational.
- Recent government financial support — channeled through recognized umbrella bodies like the Uganda National Cultural Centre and other creative leadership associations — has injected new money into the sector. While the support is welcomed, it has also intensified scrutiny of how artists are taxed and paid.
The Gospel Artist Dilemma
For gospel artists, the question cuts deeper than economics. Many view their music as ministry first, business second. “If we sing to bless God’s people, to minister in churches, at crusades, and charity events, where does a 15% deduction leave us?” one Kampala-based gospel artist asked. “Most of us don’t charge commercial rates for ministry events. Now we’re being taxed like we’re running nightclubs.”Others argue that the tax is standard across sectors and that gospel artists who earn from concerts, streams, and corporate events should contribute like any professional. The clash is less about faith and more about classification: Who qualifies as a minister, and who is an entertainer for tax purposes?
What Creatives Are Saying
Those opposed say the 15% rate is too high for an industry with irregular income, high production costs, and little social protection. They warn it could push more gigs into informal, cash-based deals, hurting long-term growth.Those in support argue that formal tax compliance is the path to industry legitimacy. With government funding now flowing through umbrella bodies, they say accountability and proper tax remittance must go hand in hand.
The Bigger Picture
Umbrella bodies are now caught in the middle — tasked with distributing government support while also educating members on tax obligations. Some are lobbying for a tiered or reduced rate for creative services, or exemptions for faith-based and charity performances, until the copyright law is signed and royalty systems are functional.Until then, artists — gospel and secular alike — are asking for clarity: clear guidelines on what’s taxable, who withholds, and whether ministry events fall under the same bracket as commercial shows.
What’s Next?
All eyes are on two offices: the President’s desk, for the Copyright Amendment Bill, and the Ministry of Finance, for potential reviews of the withholding tax application to creatives. For now, the industry waits — and debates.