The Gambia Revenue Authority (GRA) has issued a press release to remind taxpayers and the public about the income tax obligations associated with organizing entertainment events, whether local or international.
According to the GRA, both event promoters and artists, regardless of their nationality, are subject to income tax liabilities. The press release states that event promoters must follow the normal tax regulations, which include making quarterly payments, filing yearly declarations or reports, and making final payments at the end of each year.
Regarding artists or musicians, the GRA explains that taxes are withheld by the promoter and paid on their behalf to the GRA.
According to GRA, the applicable withholding tax rates are for local artists or musicians 10% withholding tax on the total amount due to the artist or musician, as outlined in section 89(3) of the Income & Value Added Tax Act 2012 and for foreign or international artists or musicians, 15% withholding tax on the total amount due to the artist or musician, as specified under sections 11 and 92 of the Income & Value Added Tax Act 2012.
The GRA emphasizes the importance of complying with these requirements, stating that failure to withhold or remit the tax withheld is considered an offense under section 95 of the Income & Value Added Tax Act 2012. In such cases, the promoter will be personally liable for the tax, penalty, and interest, as outlined in sections 231 and 229 of the same Act.
The authority highlights that to avoid potential legal consequences or disruptions during events, all promoters are strongly advised to fulfill this legal obligation.
The GRA also emphasizes its role in collecting revenue for national development. The press release is signed by the Commissioner General of the Gambia Revenue Authority.
