Taxation in ghana pdf 2017

March 2, 2017 general news comments off on ghana government cuts, abolishes nuisance taxes in 2017 budget. Analysis of incentives and disincentives for cocoa in ghana. Ghana does not adopt the economic employer approach. Mar 02, 2017 ken oforiatta finance minister a number of tax measures have been introduced in recent years in an attempt to deal with revenue shortfalls but some have proven to be nuisance taxes and have no revenue yielding potential and at the same time impose significant burden on the private sector and the average ghanaian citizen, mr ken ofori attah, the finance minister said, as he. Unfortunately, we are far behind on tax law reform in nigeria as the last time any business tax legislation was enacted or. The received pension is based on the number of years you have worked. Highlights of value added tax amendment act, 2017 act 948. All companies liable for tax in ghana, are required to pay provisional tax quarterly. Ghana is the worlds third largest producer figure 1 and the second largest exporter of cocoa beans after cote divoire figure 2. Humphreys professor of law at the university of memphis. As such, the professional services offered can add significant value to clients businesses.

These countries are the united kingdom, france, belgium, the netherlands, germany, south africa, italy, switzerland, denmark and very recently, with mauritius, and the czech republic. Ghana tax guide 2016 2017 the ghana pkf tax guide 2016 2017 provides details about tax in ghana and contact details for local tax specialists in local pkf firms who will be able to provide taxation advice to help your business. Were a network of firms in 157 countries with more than 223,000 people who are committed to delivering quality in assurance, advisory and tax services. The republic of south africa is a state in southern africa. Corporate tax 25% capital gains tax 15% dividend tax 25% annual income tax rates effective january 2020 find below. Ghana currently has nine active double tax treaties, and continues to sign more of them. This is the tax paid by companies on their profits in the year. In compiling this publication, member firms of the pkf network have based their summaries on. A study into the challenges of personal income taxation in. There is no distinction in tax regulations on the basis of region or municipality, although rules may be different by resident or nonresident status. Norms, power, and the socially embedded realities of market. The purpose, among others, of introducing this bill is to provide for the mandatory use of a fiscal electronic device fed by specified categories of taxable persons at each point of sale on the premises of the taxable persons. The employer pays % of a persons wage for the mandatory social security, while the employee pays an additional 5. Ghana government cuts, abolishes nuisance taxes in 2017.

Additional deduction for companies that employ fresh graduates 7 i. Tax 01 fall 2017 register now london city council v. The republic of singapore and the republic of ghana for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income note this agreement was signed on 31 march 2017. Identify four 4 social impacts of taxation in ghana. Ghana revenue authority act, 2009 act 791 tax forms.

Ghana issues taxation use of fiscal electronic device bill 2017. Ghana tax guide 20162017 the ghana pkf tax guide 20162017 provides details about tax in ghana and contact details for local tax specialists in local pkf firms who will be able to provide taxation advice to help your business. This article provides a groundlevel view of market taxation in two local government areas in ghanas relatively disadvantaged northern region. A study into the challenges of personal income taxation in ghana. In addition to the printed version of the wwtg, individual country taxation guides such as this are available in pdf format which can be downloaded from the pkf website at.

However, the agreement is not yet ratified and therefore does not have the force of law. The construction industry is a large and significant economic sector of most nations, like. Ghanas minister for finance, ken oforiatta, presented the 2017 budget statement and economic policy to parliament on thursday, 2 march, 2017. Income has a source in ghana if it accrues in or is derived from ghana. Below is a summary of tax policies intended to be implemented by the government of ghana in 2019 as. Get free research paper on a study into the challenges of personal income taxation in ghana project topics and materials in nigeria. However, an act of parliament nfsl amendment act, 2019 act 1011 has extended the levy from 2019 to 2024. Digital inclusion and mobile sector taxation in ghana. Although we have taken all reasonable care in compiling this publication, we do not accept responsibility for any errors or inaccuracies that it may contain. Generally, residents are taxable on their worldwide income, whilst nonresidents are taxable. Preamble ghana s minister for finance, ken oforiatta, presented the 2017 budget statement and economic policy to parliament on thursday, 2 march, 2017. There have been a few developments since our last edition in 2015. Primarily, the introduction of the income tax act, 2015. We are a group of individuals from different industries and with expertise in ghana tax laws.

Revenue administration act, 2016 act 915 tax amnesty act, 2017 act 955 tax guide. Taxable profits are based on profits declared in audited accounts subject to adjustments made for capital allowances. We assist individuals and businesses having taxrelated difficulties at no cost. Double tax treaties play a useful role in preventing double taxation, and checking tax. Pwc tax guide for petroleum operations in ghana 3 message from ghana s tax oil and gas leader i t is with great pleasure that we present you with the 2017 issue of our tax guide for the upstream petroleum sector in ghana. A quick guide to taxation in ghana a brief profile of pwc about us global overview pwc firms provide industryfocused assurance, tax and advisory services to enhance value for our clients. Typically an employee is liable to ghana income tax based on income earned in respect of duties performed in the countryterritory. Dividend tax 25% annual income tax rates effective january 2020 find below. Companies operating in ghana are liable to pay varied levels of taxes depending on the sector of operation, and the location of the project and whether the company is listed on the ghana stock exchange. Ghana issues taxation use of fiscal electronic device. Resident persons an individual is generally resident for tax purposes if that individual is present.

Ghanas minister for finance, ken oforiatta, presented the 2017 budget statement and economic policy to parliament on thursday, 2. It is with great pleasure that we present you with the 2017 issue of our tax guide for the upstream petroleum sector in ghana. Ghana 2017 budget commentary and tax highlights 4 economy and sector al outlook for 2017 2016 economic performance t ax policy pr. South africa taxation and investment 201 7 updated october 2 017 2. The double taxation convention entered into force on 10 august 1994 and is effective in ghana from 1 january 1995. The chartered institute of taxation ghana was incorporated on 10th august 2016, by the chartered institite of taxation act 2016, act 916 to promote the study of taxation and regulate the practice of taxation in ghana. Mauritius and ghana have embarked on a new chapter of cooperation with the signing of a double taxation avoidance agreement dtaa and the agreed minutes of proceedings following the inaugural meeting of the mauritius ghana permanent joint commission on bilateral cooperation held on 10 march 2017 in mauritius. Resident persons are taxed on their worldwide income, while nonresident persons are taxed on income which has a source in ghana. Ghana government cuts, abolishes nuisance taxes in 2017 budget. Ghanaians really appreciate ghanas social security system since it works reasonably well. Highlights of value added tax amendment act, 2017 act 948 tax update may 2017 3 retailers and wholesalers to charge 3% flat rate vat on their sales. International monetary fund imf for the year 2017 for all current 191 members as w ell as hong kong and t aiwan, ranks nigeria 23rd with usd 1,124,627, and ghana 79th with. Ghana tax rate for 20162017, 20152016, 20142015 ghana income tax for 2016 w.

The government of ghana gog issued a bill, on 5 october 2017, titled taxation use of fiscal electronic device bill, 2017 the bill. We anticipate that the ghana revenue authority will come out with prescribed forms for monthly filing for tax payers who deal in supplies under the vfrs 3% and the standard rate 17. The taxpayers identification numbering system act, 2002 act 632 repealed by act 915. This is approved for students in accountancy, business, computer science, economics, engineering, arts.

Acct 301 fall 2017 register now ugbs tutorial fr21. In 2010, ghana started discussions with iran for a tax treaty. Ghana fiscal guide 20172018 5 transaction taxes valueadded tax vat is levied on the supply of goods and services made in ghana, on every importation. If no, are the taxation authorities in ghana considering the adoption of this interpretation of economic employer in the future.

Moreover, ghana is not a federation, so the national taxes and levies apply in all ten regions of the country. The chartered institute of taxation ghana has been operating as a professional body. Jun 05, 2017 ghana has signed tax treaties, commonly referred to as double taxation agreements with 11 countries. Based on previous researches conducted on income taxation in ghana, it is clear that revenue generated from income tax is at a decrease, as the challenges facing income taxation increases. Tax data card ghana 2016 tax data card 2017 2 2017 kpmg, a partnership registered under ghanaian law and a member firm of the kpmg network of independent member firms affiliated with kpmg international cooperative kpmg. Norms, power, and the socially embedded realities of. Ghana has double taxation agreements with 11 countries by. Ghana has signed tax treaties, commonly referred to as double taxation agreements with 11 countries. The income tax act of 2015 regulates taxation in ghana. It is a parliamentary republic comprising nine provinces.

Three new treaties were signed in 2017 alone are yet to be ratified by parliament, while the government is considering negotiating treaties with malta and latvia. This report compiles comparable tax revenue statistics over the period 19902018 for 26 latin american and caribbean economies. Mauritius and ghana double taxation avoidance agreement. It has been estimated that in 20102011 exports of cocoa ghanas reached 1 004 000 mt gain, 2012in terms of world cocoa exports, ghana has maintained its. Dec 06, 2017 ghana currently has nine active double tax treaties, and continues to sign more of them. For more information on the tax rates in 2011 visit. Section 3 is the full report on tax reform in ghana from colonial.

The sum is calculated according to the three years with the. Pdf taxation and fiscal reform in ghana researchgate. Ghana has no local, state, or provincial government taxes on income. Pkf ghana is a member firm of the pkf international limited family of legally independent firms and does not accept any responsibility or liability for the actions or inactions of any individual member or correspondent firm or firms. The purpose, among others, of introducing this bill is to provide for the mandatory use of a fiscal electronic device fed by specified categories of taxable persons at. Business 2011 report asserted that while ghana 78, south africa 24, and nigeria ranks 4 out of 183 countries surveyed on the ease of paying taxes due to various factors. The importance, effect, causes, relationship, comparison, history, role, solutions are discussed. Guidelines for tax compliance in ghana all you need to. Ghana has double taxation agreements with 11 countries by end. Gains on realisation of assets or liabilities and gifts received 3 e. Pdf ghanas tax reforms constitute the major policy instrument needed to accelerate growth and poverty reduction. Government, tax administrators, practitioners and academics alike. The purpose, among others, of introducing this bill is to provide for the mandatory use of a fiscal electronic device fed by specified categories of taxable persons at each point of sale on the premises of the taxable. Mauritius and ghana have embarked on a new chapter of cooperation with the signing of a double taxation avoidance agreement dtaa and the agreed minutes of proceedings following the inaugural meeting of the mauritiusghana permanent joint commission on bilateral cooperation held on 10 march 2017 in mauritius.

The company seeks your views as a seasoned tax expert to advise on the possible tax implication of the above transaction. Taxation of banking business 10 taxation of insurance companies general business 11 withholding tax on premium payments 11 life insurance business 11 taxation of retirement funds 11 payments sourced from ghana 11 income attributable to a permanent establishment12 branch profit tax 12 relief from double taxation 12 double tax treaties 12. It describes a system shaped by informal practices that are grounded in social relationships and collective norms, which sometimes foster greater equity and in other cases serve to reinforce existing. Platforms for calculating paye, vatnhil and withholding taxes have been made available for free usage. In 2017, it intends to sell the vehicle for an amount of gh. Taxation use of fiscal electronic device bill, 2017. The nfsl was initially scheduled to end in december 2017. Pdf to finance basic propoor services, the government of ghana must. Based on the oecd revenue statistics database, it applies the oecd methodology to countries in latin america and the. Since 2000, the highest taxtogdp ratio in ghana was 14. Section 2 spells out the objectives of tax system and examines the use of progressive taxation practices generally in africa to accelerate economic growth as a comparative basis for ghana. Seminal arguments in political economy hold that citizens will more readily demand accountability from governments for taxes than for nontax revenue from oil or aid.