Vat regulations in ghana tax consulting firm in ghana. Value added tax act, 20 act 870 communication service tax act, 2008 act 754 value added tax amendment no. Act 902 amends some provisions in act 896 the principal act. Occupational and personal pensions scheme general regulations 2011, l. It is intended to improve tax compliance and administration and broaden the countrys income tax base by rationalizing tax breaks. We assist individuals and businesses having tax related difficulties at no cost.
Important changes which were made in the new income tax rates in ghana included the following. It is payable on residential and commercial properties. Taxable profits are based on profits declared in audited accounts subject to adjustments made for capital allowances. The implementation of the new tax, act 896, 2015, would take effect from january 2016 and would seek to address the. The income tax amendment act, 2015 act 902, was assented to by ghanas president and published in the official gazette on 30 december 2015.
The scheme empowers the commissionergeneral to appoint a person as an agent to withhold va. Ghana revenue authority clarifies new income tax law. Technical paper feasibility of taxbenefit microsimulation in ghana. Over the past two decades, the government has consistently spent more revenue than it. Paying taxes in ghana and tax reforms graphic online. The act consolidates existing income tax laws into a simpler and user friendly form. The act provides for the exemption from tax of interest paid to an individual by a resident financial institution or to an individual on bonds issued by the government of ghana. Consolidate the laws relating to income tax simplify the income tax law provisions and make it user friendly address various forms of tax base erosions on employment income, gift tax and interest paid on residential mortgages 30 november 2015 global tax alert. The ghana revenue authority gra will implement a new income tax law to replace the repealed internal revenue act, act 592 with effect from january 2016. A new tax law, income tax act, 2015 act 896 was passed in september 2015 to administer direct taxes. The new legislation, the income tax act, 2015 act 896, replaces the internal revenue act, 2000 act 592 as the primary legislation on income tax in ghana.
A look at new tax regulations the income tax regulations. Ana april 2016 ipti international property tax institute. It amends the income tax act, 2015 act 896 the principal enactment. Current parliament can still exist without 2020 elections constitutional lawyer. The income tax act, 2015 act 896 comes into effect on 1st january 2016 to. This alert highlights some of the key changes introduced by the income tax regulations. Apr 03, 2020 provides information to help individual taxpayers understand the new law, take action if necessary and comply with your federal tax return filing requirements.
Penalty for unauthorised attempt to collect tax 76. Ghana enacts new income tax act executive summary the income tax bill, 20, which was passed by ghanas parliament on 24 july 2015, was assented to by the president on 1. Legalstone solicitors llp is a full service law firm located in accra, ghana and offers a broad range of legal services to a wide variety of clients. The irs is working on implementing the tax cuts and jobs act tcja. Ghanas parliament has enacted new income tax legislation with an effective date of september 1, 2015. The president of the republic of ghana promulgated the income tax amendment act, 2016 act 907, the act. Full service law firm in ghana gold trading transaction, oil and gas and corporate law focus.
General news in ghana, politics, health, crime and more. The act was assented to by the president on 31 july. Gra practice notes to income tax act, 2015 act 896. Topics extensions due dates refundable credits tuition reporting new itin rules sec. May 30, 2017 note that despite changes made in the tax laws in 201220 and 2015 which affected ghanas rankings, other factors may account for ghanas position changing without any changes in the tax law. Ghana s tax reforms constitute the major policy instrument needed to accelerate growth and poverty reduction.
The parliament of ghana has enacted the following laws. Ghana tax guide 20162017 the ghana pkf tax guide 20162017 provides details about tax in ghana and contact details for local tax specialists in local pkf firms who will be able to provide taxation advice to help your business. Ghana revenue authority launches new income tax law latest news. Income tax rates applicable to resident individuals are. Year 2016 chargeable income rate tax payable cumulative income cumulative tax gh. This comes after the leadership of the country have come under some pressure, and following news of the leak of the panama papers and the ripples and the global call by anti.
The ghana revenue authority gra has held a stakeholders forum to help clarify some misconceptions about the new income tax law. Monthly tax rates the table below indicates the new monthly income tax bands and rates generally applicable to the chargeable income of resident individuals. The ghana revenue authority gra has launched a new income tax law to replace the internal revenue act. For more information on the tax rates visit website. The chartered institute of taxation ghana has been operating as a professional body. Property tax, popularly known in ghana as property rate, paid on immovable property, is collected annually under the auspices of the ghana internal revenue. Income tax is levied in each year of assessment on the total. Revenue administration bill, 2016 local governance bill.
The itr is made by the minister responsible for finance under the authority of the income tax act, 2015 act 896 ita and is largely for providing clarity for the better carrying. Following the passage of the income tax act, 2015, act 896 as amended the act in 2015, ghanas finance minister has issued the income tax regulations, 2016, l. The ghana revenue authority gra has outdoored a new tax law, income tax act 2015 act 896 in accra. The implementation of the new tax, act 896, 2015, would take effect from january 2016 and would seek to address the narrow and distorted tax base of the old act. The regulations, which came into force on 4 july 2016, amplify the provisions in the act. The ghana income tax act of 2015 requires the revenue authority to direct a company to pay the appropriate tax whenever there is capitalisation of profits. Jan 11, 2016 the ghana revenue authority gra has held a stakeholders forum to help clarify some misconceptions about the new income tax law. A new look at income taxation in ghana ghana 2016 oxford. This is the tax paid by companies on their profits in the year. There are four main components of taxes in ghana, namely, taxes on income and. Nov 02, 2016 ghana has amended the 1962 law on registeration of companies in july 2016 the companies act 1962, and the amended law includes a clause on beneficial ownership. This alert highlights some of the key changes introduced by the income tax regulations, 2016. We are a group of individuals from different industries and with expertise in ghana tax laws.
Ghana tax guide 2016 2017 the ghana pkf tax guide 2016 2017 provides details about tax in ghana and contact details for local tax specialists in local pkf firms who will be able to provide taxation advice to help your business. In ghana, the law requires all income earners to fill their taxes three months after the fiscal year. Ghana pkf assurance, audit, tax, advisory and business. The chartered institute of taxation ghana was incorporated on 10th august 2016, by the chartered institite of taxation act 2016, act 916 to promote the study of taxation and regulate the practice of taxation in ghana. We assist individuals and businesses having taxrelated difficulties at no cost. Topics extensions due dates refundable credits tuition reporting new itin rules. The 2015 income tax act ghana law act 896 was amended in 19 february 2016.
The act provided new regulations on how income tax was to be imposed to ghanaians citizen. The tax rate applicable to nonresident individuals is a flat rate of 25 percent on their chargeable income. The income tax bill, 20, which was passed by ghana s parliament on 24 july. Ghana amends company law, to establish register for. Ghana revenue authority clarifies new income tax law ghana. Penalty for aiding and abetting assessment of interest and penalties 77. The value added tax amendment act, 2018, act 970 the national health insurance amendment act, 2018, act 971 the ghana education trust fund amendment act, 2018, act 972. First 288 0 0 288 0 next 100 5 5 388 5 next 140 10 14 528 19 next 3,000 17. Sequel to our august 2018 tax update on the amendments to the value added tax act, 20 act 870, national health insurance act, 2012 act 852 and ghana education trust fund act, 2000 act 581, the ghana revenue authority gra has issued administrative guidelines on the implementation of the new vat regime. Where the company provides the employee with accommodation, the employee is assessed to additional tax on the benefitinkind element as follows. Penalty for making false or misleading statements 75.
Public lecture institute of chartered accountants of ghana. Platforms for calculating paye, vatnhil and withholding taxes have been made available for free usage. Gra practice notes to income tax act, 2015 act 896, ghana. Following the passage of the income tax act, 2015, act 896 as amended the act in 2015, ghana s finance minister has issued the income tax regulations, 2016, l.
This major tax legislation will affect individuals, businesses, tax exempt and government entities. Ghana revenue authority launches new income tax law. The forum created a platform for tax consultants, tax professionals, accountants, ministry of finance and others in the businesses community, to deliberate on the new law to enhance understanding. A number of significant changes have been introduced under the income tax act targeted at curbing tax base erosion and. For more information on the tax rates in 2011 visit. Companies operating in ghana are liable to pay varied levels of taxes depending on the sector of operation, and the location of the project and whether the company is listed on the ghana stock exchange. The act also covers taxation of operations in industries such as petroleum, minerals and mining, and financial services. The following enjoy tax concessionary rate of 1% on their chargeable income. Below is a summary of tax policies intended to be implemented by the government of ghana in 2019 as. New income tax law from january 2016 graphic online.