Ugandan Creatives Urged to Comply with New IP Laws and Tax Rules

Uganda’s Parliament approved the Copyright and Neighbouring Rights (Amendment) Bill on March 18, 2026, marking a significant update to intellectual property regulations suited for the digital age. The legislation improves royalty collection for artists, imposes stricter penalties for infringements, and addresses orphan works whose owners are untraceable.

As the bill awaits presidential assent, its impact on the entertainment industry is under scrutiny. Experts predict it will unlock new revenue opportunities for creators, but this comes with heightened responsibilities, including contributions to the national economy through taxes.

The Income Tax Bill for 2026/2027 introduces key changes for creatives. Performers have long been subject to business income tax on event contracts and property income tax on royalties, licensing, and IP exploitation, applicable once annual earnings exceed Shs2,820,000.

Previously, the Uganda Revenue Authority (URA) prioritized high-yield collections, often overlooking smaller creative incomes. Digital platforms like TikTok and Spotify have boosted sector earnings, prompting URA to enforce withholding: payers must deduct 6% from gross payments to public entertainers and remit it.

Artists must then file returns on total income, paying any balance at progressive rates. A new rule taxes foreign earnings of Ugandan taxpayers as domestic income, affecting international performers. This strengthens existing frameworks rather than creating new ones.

Full compliance, backed by expert advice, is recommended to avoid penalties and legal issues that could harm careers and communities.

Source: Daily Monitor (Uganda)