The Ghana Revenue Authority (GRA) has issued clarification on Ghanaian residents who fall under the recent tax law on foreign income that is set to be fully implemented.
The Accra Times made a publication on April 15, on a proposed new tax on the foreign incomes of resident Ghanaians who have resided in the country for 183 days or more by the GRA.
While we tried to make sense of what the terms were and weren’t, many of the populace sought additional clarity. According to the GRA, The legal definition of a resident individual for tax purposes is grounded in the Income Tax Act 2015 (Act 896), Sections 3 (2) (a), 103, and 111.
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Subsequently, the GRA has classified persons whose foreign income would be taxed under four thematic groups. For this classification, individuals will be considered if:
- You are a citizen with a permanent home in Ghana residing in the country
throughout the year. - You are present in Ghana for at least 183 days in any 12-month period that
begins or ends within the year. - You are a government employee or official posted abroad.
- You are a citizen who has temporarily left the country for not more than 365
continuous days and continues to maintain a permanent home in Ghana.
As part of the process of implementation, the GRA also hinted that its window of opportunity is still open for resident persons to file or report their undisclosed incomes.
“To facilitate easier declaration and payment of taxes for resident individuals to report of undisclosed incomes, the GRA has opened a special window for taxpayers to rectify their records. All eligible individuals are strongly encouraged to utilize this opportunity to regularize their tax affairs,” the release stated.
