How new tax regime could change creative industries

What the report says

Uganda’s entertainment sector is facing a new tax framework under the Income Tax (Amendment) Act 2026, according to Sqoop Uganda. The article says President Yoweri Museveni assented to the law on August 20, and that it introduces a statutory 6% withholding tax on payments made to public entertainers. The measure is described as part of the 2026/27 financial year, even though the law’s commencement date is listed as July 1.

Sqoop Uganda reports that the change affects more than artists’ take-home pay. It could influence how performers negotiate fees, how concert promoters set budgets, how brands contract entertainers and how emerging creators manage increasingly commercial careers. The publication frames the tax as a sign that Uganda’s tax system is beginning to treat entertainment as a broader business sector, not just a concert-based activity.

The development matters because Uganda’s creative industries have become increasingly commercial, with artists working across live events, endorsements and other business arrangements. In general, withholding taxes are used by governments to collect revenue at the point of payment, and such rules can affect both compliance and cash flow for workers and hirers. Sqoop Uganda’s report does not provide implementation details or reactions from artists, but it suggests the change could reshape how the sector prices work and plans transactions.