GRA wishes to remind all taxpayers and the public that entertainment events organised locally or internationally are subject to income tax. The income tax liability is imposed on both the promoter of the event and the artist (local or foreign).
For the promoter of the event, the income tax shall be paid in accordance with the normal tax regime which is a quarterly payment obligation, an annual filing/declaration and final payment obligations at the end of the year.
For the artist or musician (local or foreign) the tax shall be withheld by the promoter and paid to the GRA on their behalf. The applicable withhold tax rates are as follows:
- Local artist or musician – a withholding tax on the gross amount due to the artist or musician at the rate of 10% as specified under section 89(3) of the Income & Value Added tax Act 2012.
- Foreign or international artist or musician – a withholding tax on the gross amount due to the artist or musician at the rate of 15% as specified under sections 11 and 92 of the Income & Value Added tax Act 2012.
It is important for all promoters to note that failure to withhold tax as stated above or failure to remit tax withheld is an offense under section 95 of the Income & Value Added tax Act 2012. In such a case the promoter shall be held personally liable for the tax, penalty, and interest in accordance with sections 231 and 229 of the Income & Value Added tax Act 2012 respectively.
All promoters are strictly advised to comply with this legal requirement to avoid enforcement of full force of the law or disruption of their event by the GRA.
GRA, Collecting Revenue for National Development.
Signed:
Commissioner General
