Ghana: tax aspects

Highlights on recent tax amendments

Ghana’s Minister for Finance announced a number of tax measures in the recent mid-year budget review for 2018. The measures are largely aimed at shoring up tax revenue.

Following the announcement, Parliament has passed tax amendments and made new enactments to make the proposals operational from 1st August, 2018, as per:

  • Restructure of VAT
  • Introduction of luxury vehicle levy
  • Implementation of Fiscal Electronic Device Act and other compliance measures

Ghana Revenue Authority (GRA) Guidelines on New VAT

The GRA has issued Administrative Guidelines on the implementation of the new VAT regime. These guidelines are aimed at facilitating the smooth implementation of the amendments.

VAT withholding agents are required to continue to withhold VAT at a rate of 7% on the taxable value (Sales Value + National Health Insurance act with a rate at 2.5% + Ghana Education Trust fund Act with a rate at 2.5%).

Mid-year Fiscal policy review of the 2018 Budget statement and economic policy

The Minister of Finance has presented to Parliament on 19th July 2018, a mid-year fiscal policy review which entails different guidelines on the following topics:

  • Communication right to create a database and fight against informal sector
  • Surveys sent to big companies on their transfer pricing documentation