Business

GRA clarifies decision to tax incomes of resident Ghanaians

The Ghana Revenue Authority (GRA) has issued a clarification regarding its decision to tax the foreign incomes of resident Ghanaians. This move, according to GRA, is supported by the Tax Act 2015 (Act 896). In a statement released on Monday, April 22, GRA provided details regarding who will be affected by this tax.

The decision to tax foreign incomes of resident Ghanaians was announced on Monday, April 15, as an alternative to the suspended VAT on electricity, which resulted in a revenue gap of approximately GH¢1.8 billion.

According to GRA, individuals considered residents for tax purposes include citizens; with a permanent home in Ghana residing in the country throughout the year, present in Ghana for at least 183 days in any 12-month period that begins or ends within the year, government employees or officials posted abroad, etc.

In preparation for the tax rollout, the GRA “opened a special window for taxpayers to rectify their records.”

Below is GRA’s full statement.

The Ghana Revenue Authority (GRA) has noted concerns raised by the general public on the tax status of individuals who earn incomes abroad and whether they are deemed by the Tax laws as “resident individuals” for tax purposes.

In light of these concerns, it is important to clarify who qualifies as a resident individual for tax purposes.

The legal definition of a resident individual for tax purposes is grounded in the Income Tax Act 2015 (Act 896), Sections 3 (2) (a), 103, and 111.

Clarification of key details:

Individuals considered resident for tax purposes:

1. Are citizens with a permanent home in Ghana residing in the country throughout the year

2. Are present in Ghana for at least 183 days in any 12-month period that begins or ends within the year

3. Include government employees or officials posted abroad

4. Are citizens temporarily absent from Ghana for not more than 365 continuous days who maintain a permanent home in Ghana

To facilitate easier declaration and payment of taxes for resident individuals to report of undisclosed incomes, the GRA has opened a special window for taxpayers to rectify their records.

All eligible individuals are strongly encouraged to utilize this opportunity to regularize their tax affairs.

What's your reaction?

Excited
0
Happy
0
In Love
0
Not Sure
0
Silly
0

You may also like

Leave a reply

Your email address will not be published. Required fields are marked *

More in:Business