An employee`s income is subject to withholding tax by the employer. The employer`s obligation to withhold tax prevails over any other obligation or provision of any law. This is a tax that is deducted by a taxable person with withholding tax (a person who is obliged to deduct the tax) when paying another person at source and is then paid to the GRA. Within fifteen (15) days of the end of the month, a withholding agent submits a return in the prescribed form and the tax withheld and pays it to the Commissioner General. Foreign tax credits are calculated separately for the taxable foreign income of any business, employment or investment and may not exceed that person`s average rate of ghanaian income tax for the taxation year applied to that person`s taxable foreign income for the year from any business, employment or investment. Companies pay taxes by self-assessment and withholding tax, with companies themselves acting as withholding tax agents for the State (see table for different withholding tax rates). During the third month of each resident corporation`s fiscal year, the corporation must submit a self-assessment form that explains an estimate of the taxes payable for the fiscal year. The estimated tax must then be paid to the GRA in quarterly instalments, and the total amount paid must ultimately amount to at least 90% of the tax actually payable for the accounting year. Resident corporations are also required to file corporate income tax returns no later than four months after the end of their accounting year.
After that, resident businesses must pay all unpaid corporate taxes after claiming a credit for estimated taxes paid and withheld during the year. A withholding tax representative is entitled to claim the tax paid by the withholding party. A taxable person subject to VAT who has made supplies and has suffered a withholding tax will continue to file his VAT and submission returns and pay those duties to the Ghana Revenue Authority in accordance with the provisions of the VAT Act 2013 (Act 870), the NHIL and the GETFund Act. The withholding agent will continue to issue the supplier with a source deduction certificate indicating the amount of tax withheld. These certificates must be used as proof of advance payment of VAT and taxes. The refusal issue a source certificate to the person entitled to detention in the prescribed form. Designated VAT registered companies are required to withhold VAT on the payment of standard VAT supplies and VAT withheld for up to 15 years. of the month following the month for which VAT was withheld from gra. The VAT retained will be charged at 7% of the tax value of the delivery. THE COMPANIES subject to VAT were mainly focused on the financial sector, the upstream oil sector, the mining sector and various government agencies. Designated VAT registered businesses are required to issue source VAT credit certificates that can be used by the relevant suppliers to reduce the VAT payable.
VAT officers for withholding taxes will continue to submit withholding tax returns and make payments of the VAT withheld to the Commissioner-General until the 15th of the month immediately following the month to which a return relates. A withholding agent who does not withhold tax is required to pay the tax. Fees for residents as supervisors, examiners and part-time teachers or lecturers and registration fees for individuals • Ghana Education Trust Fund Act 2000 (Act 581); Which categories are subject to income tax in general situations? A person`s taxable income for an assessment year is the sum of that person`s business, employment and investment income minus the total amount of deductions. Companies can therefore reach an agreement with the Government of Ghana to benefit from similar concessions. • Income from real estate investment trusts, mutual funds and licensed investment funds; • The income of manufacturing companies outside Accra or Tema is taxed at 18.75% if they reside in another regional capital and at 12.5% if they reside outside the regional capitals; There are frequent communications between the Ghana Immigration Service (GIS) and the GRA through officers in Ghana. Before an assignee is issued or renewed his work and residence permit with the GIS, an application for a tax clearance certificate is submitted to the GRA. • 9 per cent tax on communications services on electronic communications services; and you have reached the limit of premium items that you can watch for free. .