International artistes to pay tax

By The Southern Eye | Jan. 7, 2014

A 15 % withholding tax on gross fees paid by non-resident performing artistes has come to effect amid mixed reactions in the entertainment sector.

LUYANDUHLOBO MAKWATI OWN CORRESPONDENT

Finance minister Patrick Chinamasa announced the 15% levy during the 2014 budget presentation last month, indicating that it would come into effect on January 1 2014.

In his budget statement, Chinamasa said there had been an increase in the country’s entertainment sector of non-resident artistes including musicians, dancers and comedians.

“The current requirement for an estimated assessment for performing artists is complicated and not secure enough to minimise revenue leakages since there is no legal obligation on the promoters or paying agents to withhold tax from performing artistes.

“In order to simplify the mechanism for taxation, performing artistes and plug existing loopholes, I propose to introduce a 15% withholding tax on gross fees paid to non-resident performing artistes with effect from 1 January,” he said.

However, artistes in Bulawayo yesterday expressed different views over the introduction of the levy for non-resident artistes.

Cont Mhlanga, a veteran artiste, said the move was one of the best in the history of the country, adding that it was a sign that the government has realised that the arts and culture sector is an industry.

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“I think the move by the minister is worth celebrating because the arts sector is now treated as an industry. If the government taxes international artistes it means the money can be used to develop the arts sector in the country,” he said.

Local promoter Jomo Mhone of Providence Sounds said while the move was welcome, it was likely to affect promoters who brought in foreign artistes.

“Promoters are likely to have problems in bringing in international artistes. This might affect the promotion of music in the country,” he said.