The regulations, which came into force on 4 july 2016, amplify the provisions in the act. The act consolidates existing income tax laws into a. Act 902 amends some provisions in act 896 the principal act. Gra practice notes to income tax act, 2015 act 896, ghana. As the act did not specify any date of commencement, in accordance with the provisions of the constitution of the republic of ghana constitution, 1992, the act entered into force on its. Passed by parliament and assented to by the president. Income tax act, 2015 act 896 datasets resourcedata. The ghana revenue authority gra has outdoored a new tax law, income tax act 2015 act 896 in accra.
A survey of income tax, social security tax rates and tax legislation. The income tax amendment act, 2019 act 1007 has amended the sixth schedule of act 896 to provide for tax exemption on the income of registered manufacturers and assemblers of automobiles under the ghana automotive development programme gamdp. Platforms for calculating paye, vatnhil and withholding taxes have been made available for free usage. This table sets forth the differences between the new act and the old act regarding key tax provisions.
Latest news in ghana, nigeria, politics, music download, entertainment, relationships, foreign, general news, events, lifestyle, fashion, beauty, inspiration. New act act 896 old act act 592 as amended assessable income of a nonresident person income connected to the ghanaian permanent establishment of the nonresident person, irrespective of the source of income, is included in. Jan 15, 2016 the income tax act 2015, act 896 the act came into force on 1 st january 2016. New income tax act 2015 act 896 ghanaculturepolitics. Act 896 makes provisions for amendment and revocation of practice notes and private rulings. Ghana s parliament has enacted the value added tax amendment act, 2017 act 948 to amend the value added tax act, 20 act 870. Ghana revenue authority act, 2009 act 791 tax guide. Amendments to the income tax act, 2015 act 896 the commissionergeneral of the ghana revenue authority gra wishes to inform the general public that the following amendments have been made to the income tax act, 2015 act 896 by the income tax amendment act, 2019 act 1007. Termination of employment under act 651, a contract of employment may be terminated by either party at any time. The amendment to act 896 introduces a provision on importers and manufacturers of excisable products under paragraph 10 of the first schedule to act 896. The companies act, 1963 act 179 income tax act, 2015 act 896 fisheries act, 2002 act 625.
Act 883 the eight hundred and eightythird act of the parliament of the republic of ghana entitled national pensions amendment act, 2014 an act to amend the national pensions act, 2008 act 766 to reduce the age for exemption from the firsttier scheme and to provide for related matters. A number of acts of parliament of the republic of ghana govern the manner in which taxes are administered in ghana. It is intended to improve tax compliance and administration and broaden the countrys income tax base by rationalizing tax breaks. What you need to know about ghanas new tax law, income tax act. Income tax act, 2015 act 896 this document is part of the source library for nrgis 2017 resource governance index, a comprehensive measure of the quality of natural resource governance in 81 oil, gas and mineralrich countries. Revenue administration act, 2016 act 915 preamble an act to provide for the administration and collection of revenue by the ghana revenue authority and for related matters. The tax proposals made by the government of ghana in the 2019 budget and. This act was passed in order to simplify the income tax law and to consolidate all the laws on income tax in ghana. Constitution of the republic of ghana amendment act, 1996.
Gra practice notes to income tax act, 2015 act 896. Important changes which were made in the new income tax rates in ghana included the following. Pkf ghana is a member firm of the pkf international limited family of legally independent firms and does not accept any responsibility or liability for the actions or inactions of any individual member or correspondent firm or firms. For the purposes of taxation, how is an individual defined as a resident of ghana. Knowledge and understanding of board of trustees 37. Free zone act, 1995 act 504 free zone act, 1995 arrangement of sections establishment of free zones authority section act 504 issue 1 1. What you need to know about ghanas new tax law, income tax.
Manufacturing business located in the regional capitals of ghana except. The deputy minister of finance, mona quartey, has officially launched the ghana revenue authority new income tax act, 2015 act 896, which seeks to facilitate and encourage voluntary compliance by tax payers with the countrys tax law. Ghana revenue authority act 791 2009 value added tax act 870 20 income tax act 896 2015. An act to revise the law relating to insurance in order to provide comprehensive provisions for the regulation of the insurance industry and for related matters. Banks and special deposit act, 2016 act 930 date of assent. Income tax act, 2015 act 896 was passed in september 2015 to administer direct taxes. The ghana revenue authority wishes to inform the general public that following the passage of the income tax amendment no. Public lecture institute of chartered accountants of ghana. The commissionergeneral of the ghana revenue authority gra wishes to inform the general public that the following amendments have been made to the income tax act, 2015 act 896 by the income tax amendment act, 2019 act 1007. A look at new tax regulations the income tax regulations. Even though this move will enhance tax administration by ghana revenue authority, it also brought along a number of changes that. The income tax amendment act, 2015 act 902, was assented to by ghanas president and published in the official gazette on 30 december 2015. Revenue administration bill, 2016 local governance bill, 2016.
We are a group of individuals from different industries and with expertise in ghana tax laws. Resident persons an individual is resident for tax purposes if that individual is. Revised personal income tax rates and other tax law. Ghana investment promotion centre act 20, act 865 technology transfer regulations, 1992, li 1547 transfer pricing regulations, 2012 l. 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 into effect of the provisions if the ita. Mining laws and regulations ghana covers common issues in mining laws and regulations including the mechanics of acquisition of rights, foreign ownership and indigenous ownership requirements and restrictions, processing, beneficiation in 28 jurisdictions. Apr 04, 2019 the banks and specialised deposittaking institutions act 2016, act 930, is the primary statute governing banking industry in ghana. Except free zone enterprises, companies enjoying tax holidays to pay tax at 1%. Ghana revenue authority general refund account after refunds certified by the commissionergeneral have been paid, the outstanding amount shall be paid into the consolidated fund by the commissionergeneral in accordance with the financial administration act, 2003 act 654 and the financial administration regulations, 2004 l.
Occupational and personal pensions scheme general regulations 2011, l. We provide answers to frequently asked questions by individuals and businesses in relation to taxation. Income tax act 2015act 896 ghana revenue authority. The 2015 income tax act ghana law act 896 was amended in 19 february 2016. Tax administration in ghana this is all about the machinery put in place to determine, monitor and.
Act 663, company, ghana, goods, public procurement act 2003. The income tax act 2015, act 896 the act came into force on 1st january 2016. The minerals and mining act, 2006 act 703 as amended by the. Ghana enacts income tax amendments 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 income tax act, 2015 act 896 has been amended to revise the rates for the taxation of income of resident individuals. Revised personal income tax rates and other tax law amendments. Thus, in accordance with the provisions of the constitution of the republic of ghana constitution, 1992, the act entered into force on 1 september 2015, its date of publication. Importers and manufacturers of excisable goods shall be granted accelerated depreciation over a two year period on affixing machinery and equipment imported. Part iii, of the income tax act, 2015 act 896 contains specific measures relating to income splitting, thin capitalisation and arms length standard and arrangements between associates. Part i imposition of income tax imposition of income tax 1. Insurance act, 2006 act 724 the seven hundred and twentyfourth act of the parliament of the republic of ghana entitled insurance act, 2006.
The act provided new regulations on how income tax was to be imposed to ghanaians citizen. Highlights of value added tax amendment act, 2017 act. 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. The act consolidates existing income tax laws into a simpler and user friendly form. Income tax act, 2015 8 act 896 act of the parliament of the republic of ghana entitled income tax act, 2015 an act to provide for the imposition of income tax and for related purposes. Gra launch new income tax act, 2015 act 896 modern ghana. However, where the contract of employment is for three 3 years or more, it may be terminated upon a months notice or a months pay in lieu of notice. National taxes and levies apply in all ten regions of the country. Importers and manufacturers of excisable goods shall be granted accelerated depreciation over a two year.
The act was numbered 896 and published in the official gazette on 1 september 2015. The top marginal tax rate has now been reduced from 35% to 30% on annual monthly taxable income exceeding ghs 240,000 ghs 20,000. Income tax act 2015 act 896 aitc international tax. Revenue administration bill, 2016 local governance bill.
Banks and special deposit act, 2016 date of assent. We assist individuals and businesses having taxrelated difficulties at no cost. Despite the binding nature of the ruling by the cg, a taxpayer can challenge same in court 23032016 presented by edward a. Below are the main changes the itr introduces that affect businesses and employers in ghana. O n january 1, 2016, the much awaited income tax act 2015 act 896 which seeks to consolidate income tax laws and regulations which relate to financial institutions, insurance, mining, and petroleum came into force.
Final income tax act, 2015 gnbcc ghana netherlands. A new tax law, income tax act, 2015 act 896 was passed in september 2015 to administer direct taxes. Register now for your free, tailored, daily legal newsfeed service. The new income tax amendment by the parliament of ghana which takes effect on august 1st 2018. This alert highlights some of the key changes introduced by the income tax regulations, 2016. This came into force on 14 september 2016 to repeal the banking. Cg of the ghana revenue authority gra as a practical guide and is not intended to be a prescriptive or an exhaustive discussion of every transfer pricing issue that might arise. As the act did not specify any date of commencement, in accordance with the provisions of the. In accordance with the income tax act, 2015 act 896, any investment income and capital gains with ghanaian source are subject to tax in ghana in the case of nonresidents. Residents who are citizens, however, are subject to tax on investment income and capital gains on their worldwide income.
Revenue administration bill, 2016 authorisation and protection of tax officers 2. Each case will be decided on the facts and circumstances of each transaction, taking into account the taxpayers business strategies and commercial judgments. The income tax amendment act, 2015 act 902, was assented to by ghana s president and published in the official gazette on 30 december 2015. This replaces the internal revenue act 2000 act 592, which was passed in 2001 and the various amendments to it. New income tax act 2015 act 896 new income tax act 2015 act 896 1042 downloads. Manufacturing business located in regional capitals of ghana. An act to amend the income tax act, 2015 act 896 to provide for the exemption from tax. The income tax act, 2015 act 896 comes into effect on 1st january 2016 to replace the. The income tax act, 2015 act 896 has been amended to revise the rates for the taxation of.
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