Promoters bringing foreign artistes to perform in the country should pay tax for them, according to the Zimbabwe Revenue Authority (ZIMRA).
The tax should be paid before the 10th day of the month after the performance. A foreign artiste is a non-resident entertainer who is contracted to perform in the country.
“Section 80B of the Income Tax Act (23:06) requires withholding of 15 percent tax for a foreign artiste.
“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 as the Commissioner may allow,” said ZIMRA.
“A contractor means a contractor of the services of any payee who is a non-resident artiste or entertainer contracted to perform in Zimbabwe.”
ZIMRA said payment can be by cash, barter, setoff, crediting a director’s loan accounts, intercompany debits and credits or by other settlement of obligations.
The taxman added that all contractors should have clearance letters from the National Arts Council of Zimbabwe, a signed contract between the promoter and foreign artistes that is stamped by NACZ, and payment details with proof of payment made to the artiste by the promoter.