The Ghana Revenue Authority (GRA) has explained why it has become necessary for Ghanaians residing in the country to pay taxes on money they earn from other countries.
This clarification came on Monday, April 22, following their earlier announcement on April 15.
This tax is set to replace the previously halted VAT on electricity which led to a shortfall of approximately GH¢1.8 billion in revenue.
According to the GRA, the taxation is in line with the Tax Act 2015 (Act 896).
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The tax will affect Ghanaians with a permanent home in Ghana who live in the country throughout the year, those staying in Ghana for at least 183 days in any 12 months, starting or ending within the year, Government employees or officials working overseas and finally, Citizens who are temporarily out of Ghana for not more than 365 continuous days but maintain a permanent home in Ghana.
In response to public queries about the tax status of Ghanaians earning abroad, the GRA emphasised that these individuals are considered “resident individuals” under specific sections of the Income Tax Act.
To aid these taxpayers in updating their records and ensuring their tax obligations are met, the GRA has opened a special window.
Therefore, GRA issued a statement urging all eligible individuals to take advantage of this period to adjust their tax records accordingly.
READ THE FULL STATEMENT BELOW:
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 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.
