ORC Exempts SMEs From Filing Full Version of Annual Income Tax Returns
Small and Medium-sized Businesses (SMEs) have been exempted by the Office of the Registrar of Companies (ORC) from filing the full version of their annual income tax returns as by Section 126 of the Companies Act 2019 (Act 992).
The exemption from filing the full version of the annual income tax returns by SMEs follows a directive by the ORC as contained in a statement dated January 22, 2025.
“Under Regulation 52 of the Companies Regulations, companies classified as small or medium in accordance with Regulation 51 of Companies Regulations, are exempted from the requirement to file annual returns in the form required under Section 126 of the Companies Act.
“Such companies will only be required to confirm the accuracy of the information of the company contained in the Register,” said the ORC.
According to the ORC, the classification of businesses is based on their turnover and any other variable determined by the ORC in consultation with the Board of the company.
Per the ORC, businesses with turnover and assets within the interval of GHS 0 to GHS 400,000 are classified as small businesses.
Businesses with turnover and assets within the interval of GHS 400,000 and GHS 10,000,000 are classified as medium-sized businesses.
For large businesses, the turnover and assets must be above GHS 10,000,000.
The ORC per Section 353 of the Companies Act, 2019 is established to register and regulate all types of businesses in conformity with the Act and other relevant enactments.
