Tax Act 2015 cited as legal basis for GRA’s foreign income levy on ‘resident Ghanaians’
The Ghana Revenue Authority (GRA) has clarified its decision to impose taxes on the foreign incomes of resident Ghanaians.
Citing the Tax Act 2015 (Act 896) as its legal foundation, the GRA has defended the move as a necessary measure to address the substantial revenue gap left by the suspension of the Value Added Tax (VAT) on electricity, estimated at GH¢1.8 billion.
In a statement issued on Monday, the GRA clarified the criteria defining a resident for tax purposes. According to the authority, individuals are considered residents if they possess a permanent abode in Ghana and maintain a continuous presence in the country throughout the fiscal year.
Additionally, those spending a minimum of 183 days within Ghana in any 12-month period commencing or concluding within the year fall under the resident category. This designation also extends to government employees or officials stationed abroad.
Meanwhile, in a bid to facilitate compliance and ease the transition for taxpayers, the GRA has launched a special window allowing taxpayers to rectify their records. The authority strongly encourages eligible individuals to seize the opportunity to regularise their tax affairs.
The tax on foreign income of Ghanaians by the GRA has been presented by the government as an alternative solution to bridge the revenue shortfall caused by the VAT suspension. This move underscores the increasing pressure on the GRA to diversify revenue streams and enhance tax compliance in order to sustain public services and economic stability.
Read the details of the statement below:
