21.02.2024

Ghana: Amendments to Tax Laws in Ghana

NEW GRADUATED TAX SCALE:

An amendment to the first schedule of the Income Tax, 2015 (Act 896) resulted in a new annual graduated tax scale for resident individuals. The annual tax-free band was increased from GH¢4,824.00 to GH¢5,880.00.

MONTHLY TAX RATES

Year 2024	Chargeable Income GH¢	Rate %	Tax Payable GH¢	Cumulative Income GH¢	Cumulative Tax GH¢
First	490.00	0	-	490.00	-
Next	110.00	5	5.50	600.00	5.50
Next	130.00	10	13.00	730.00	18.50
Next	3,166.67	17.5	554.17	3,896.67	572.67
Next	16,000.00	25	4,000.00	19,896.67	4,572.67
Next	30,520.00	30	9,156.00	50,416.67	13,728.67
Exceeding	50,416.67	35	17,645.83

CHANGES IN THE VALUE ADDED TAX ACT:

The amendment to the VAT Act extends the zero-tax rate on the supply of locally manufactured textiles and locally assembled vehicles for two years. It also introduces a zero-tax rate on locally manufactured sanitary towels.

The amendment also provides for waiver of Value Added Tax on the importation of electric vehicles for public transportation, it further introduces a flat rate for the rental of commercial premises other than commercial rental establishments together with sale of immovable property by an estate developer.

There has been an exclusion from exempt supply in the first schedule; Imported textbooks, exercise books, newspapers, publications, and charts. Also, non-life insurance has been excluded from exempt supplies and will not attract VAT.

REVISION OF THE STAMP DUTY RATES:

The Stamp Duty Act, 2005 (Act 689) rate of Stamp Duty has been revised upward for various instruments.

NEW CHANGES IN THE EXEMPTION ACT:

The Exemptions Act has been amended to provide a waiver of customs duties and custom taxes with respect to the importation of fishing gear imported for agricultural purposes, subject to the certification and approval by the minister responsible for Fisheries and Aquaculture Development.

INTRODUCTION OF THE EMISSIONS LEVY:

The purpose of this levy was to impose an emissions levy on carbon dioxide equivalent emissions from specified sectors and internal combustion engine vehicles emissions. Persons required to pay the Emission Levy are categorized into two, namely:

Persons in the sectors of construction, manufacturing, mining, oil and gas, electricity and heating.
Owners of Motor Vehicles.

The levy for entities in the specified sectors is based on the sum of greenhouse gas emission by a person expressed as carbon dioxide equivalent of those greenhouse emissions per month. Levy for motor vehicles is at a flat rate ranging from GHC 75.00 - GHC 300.00, based on the size of the engine capacity.

Returns to be filed under this new Act are;

Annual Estimate of Levy Payable
Monthly quantity of Emission returns
Levy payable returns

CHANGES IN THE EXCISE DUTY:

The amendment to excise duty seeks to equalize the excise duty rate on cider with beer, reduce the excise duty on plastics and expand the coverage of the excise duty on plastics to imported plastic packaging.

If you wish to discuss these topics, please contact:

WTS Nobisfields

Author

Theophilus Tawiah

Managing Partner

Ghana

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Article published in WTS Africa Quarterly Newsletter #1/2024

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