Show organisers required to pay tax for foreign artists

EVER wondered why some shows are hyped up, and then cancelled at the last minute
without a clear explanation?

One of the reasons is that promoters neglect to get tax clearance for artistes.

Show organisers that bring foreign acts to perform in the country are required to pay tax
for them before the 10th day of the month after the performance, the Zimbabwe Revenue
Authority (Zimra) has said.

The process starts with getting a tax clearance for the visiting artistes.

According to a statement that the authority issued recently, any contractor who wishes
to obtain a tax clearance for a foreign artist should submit their application to Zimra
together with a clearance letter from the National Arts Council of Zimbabwe (NACZ) and
copies of the current passport of the foreign artist before the show is held.

Promoters are also required to provide a copy of the signed contract between them and
their client, dated and stamped by the NACZ, payment details and proof of payment made
by the music promoter to assist in the calculation of the tax to be paid.

Zimra defined a foreign artist as any non-resident entertainer who is contracted to
perform in Zimbabwe, and revealed that these are obligated to have clearance letters to
perform with the assistance of their contractor, who would have invited them.
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Taxes
The Zimbabwean Income Tax Act of 1967 states that all payments made to foreign artists
for their work are subjected to Withholding tax (WHT)

The Withholding tax can be simply understood as a percentage, which is deducted from
payments due to suppliers that do not possess a valid tax clearance by the payer for
remission of the deducted funds to Zimra.
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It is meant to ensure that all business people, in this case music promoters, pay tax.
“Payments made towards foreign artists are subject to Withholding Tax according to
Section 80B of the Income-tax Act (26:06) at the rate of 15%. Payment means payment
by cash, barter, set-off, crediting a director’s loan account, intercompany debits and
credits or other settlement of obligation or whatsoever and in any form.
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National Arts Council of Zimbabwe
“A contractor has the obligation of withholding the tax and shall pay each amount so
withheld to the Commissioner on or before the 10th day of the month following that in
which the payment was made or within such further time the Commissioner may allow”,
reads the statement.-The Chronicle