Know the new rates of Income Tax contained in Income Tax Act, 2015 (Act 896)

Graphic.com.gh Jan - 04 - 2016 , 11:29

The Ghana Revenue Authority has released the new rates of Income Tax contained in the Income Tax Act, 2015 (Act 896).

According to the Commissioner General of the GRA, the effective date of implementation of the new rates is January 1, 2016 and hence the general public should note for compliance.

Download a copy of the new rates from here

ENTITY	RATES OF TAX %
Corporate Income Tax	25
Company principally engaged in hotel industry	22
Chargeable income derived by a financial institution from loan granted to a farming enterprise in production of income enterprise	20
Chargeable income derived by a financial institution from loan granted to a leasing company to fund acquisition of assets for lease	20
Manufacturing business located in regional capitals (except Accra & Tema)	75% of corporate tax
Manufacturing business located outside the regional capitals	50% of corporate tax
Free zone enterprise/ developers after 10 years in operation	0
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Chargeable income of a person from petroleum operations Chargeable income of a person from mineral operations	35 35

AGRO PROCESSING COMPANIES

RATES OF TAX %

Agro processing business conducted wholly in the country for first 5 years

Cocoa by product business conducted wholly in country for the first 5 years

Rural banking business for the first 10 years

Tree crop farming for the first 5 years

Cash crops or livestock (excluding cattle) for the first 5 years

Waste processing business for the first 7 years

Income derived from letting for sale low cost affordable residential premises approved by Minister of Works and Housing for the first 5 years

Chargeable income trust

APPROVED UNIT TRUST AND MUTUAL FUND

Approved unit trust scheme and mutual fund for the first 10 years

Interest or dividend paid to a member of a holder of an approved unit trust or mutual fund

Income from qualifying venture capital financing company for the first 10 years

Interest or dividend paid or credited to a person on a qualifying investment in a qualifying venture capital financing company for the first 10 years

Resident individual

Non resident Individual

Gain on realisation of investment asset by an individual

Graduated rates provided om the first schedule

WITHHOLDING TAX

INCOME

RATE (%)

COMMENTS

Resident persons

Interest (excluding individuals and resident financial institutions)

Interest paid to individual

Dividend

Rent of residential property (for individuals and as investment income)

Rent of non residential property

Fees, allowance to resident director / manager, board member, trustee

Fees to lecturers, invigilators, examiners, part time teachers, non executive directors / board members and endorsement fees

Commissions to insurance agents, sales and persons

Commissions to resident lotto receivers or agents

Supply of goods exceeding GH Ȼ2,000 p.a

Supply of works

Supply of services

Lottery winnings

Payment to petroleum subcontractor

Payment for unprocessed precious minerals

Royalty, natural resource payment

NON RESIDENT PERSONS

Income of non-resident individual from employment

Dividend

Royalties, natural resources payments and rents

Management, consulting and technical service fee and endorsement

Repatriated Branch after tax profits

Interest income

Short term insurance premium

Endorsement fees

Payment of services

Goods, works and services that give rise to income accruing in or derived from Ghana (That is trading in Ghana(i.e. where a Permanent Establishment exists) as against with Ghana)

Petroleum sub contractor

Payments received by person who conducts a relevant transport business as payment for

(i) carrying passengers, cargo, mail or other movable tangible assets that are embarked in the country, other than as a result of transhipment; or

(ii) renting containers and related equipment which are supplementary or incidental to the business referred to in subparagraph

Payments received by a person who conducts a business of transmitting or receiving messages by cable, radio, optical fibre or satellite or electronic communication in respect of the transmission, reception or emission of messages by an apparatus located in the country, whether or not the messages originate, terminate or are used in the country;