URA engages the creatives industry promoters

Promoters have appealed to URA to enroll all stakeholders in the creatives industry to the taxpayer register before taxing public entertainment services/events. They further beseeched for sensitization of stakeholders in the sector on their tax obligations. This will enable them adhere to URA’s directive of contracting TIN registered service providers, they said.

This call was made by the leadership of the National Promoters’ Association (NPA) during a recent meeting held to discuss compliance and have promoters understand their tax obligations and how to fulfill them.

During the meeting, the promoters highlighted the fees they are required to pay to different government agencies for concerts including; security fees to Police, KCCA, NEMA, Local Councils, RDC’s among others.

Lubulwa Emma of Luba events elucidated that they pay a lot of money to government and yet they make losses sometimes. He further clarified that public events aren’t money making ideas but tools to promote their other businesses which are already tax complaint.

Lubulwa Emma therefore requested URA to tax them in bands depending on the size of the concert and not on income earned. He also argued that the industry is mostly informal and therefore they cannot have proof of all expenses to inform deductions.

In response, Hasfah Seguya from tax literacy advised the promoters to embrace mindset change, formalize their businesses and start keeping records adding that losses and profits can only be declared through a return. She added that this could be used as evidence to inform policy changes that players in the industry are asking for.

Musinguzi Abbey aka Abitex vice president UMA requested for URA to provide amnesty on previous assessments as it sensitizes stakeholders on taxation. He was guided to request in writing to the Commissioner General.

Currently, before a promoter holds a concert, URA invites them for a first engagement where they are informed on all tax heads applicable. James Otim from the compliance office in Kampala East explained that the engagement is to also get facts of service providers they will work with. He urged promoters to always share this information as it’s the only way URA will know who earned income for tax purposes.

According the Uganda Bureau of statistics, Uganda’s creative industry is valued at 140 Billion. Despite its size, revenue from the industry is still meagre with collections between June-December 2022 totaling to UGX 579 million only.

Because of this, URA has embarked on a sensitization drive to engage stakeholders from this sector to improve their compliance.

These include promoters, musicians, venue owners, voice over artists, MC’s, DJs, printing companies for banners and event organizers among others.