Ghana Introduces New Income Tax Law
Monday, December 14, 2015
Ghana's new Income Tax Act (No. 896 of 2015) will come into force on January 1, 2016. It is intended to improve tax compliance and administration and broaden the country's
income tax base by rationalizing tax breaks.
In the new Act, there are specific provisions governing the imposition of income
tax and the various means and timing for its payment. The legislation defines
chargeable income from any employment, business, or investment, and, in each
case, sets out the deductions and allowances available.
Rules are also established with regard to the calculation of income tax, such
as the methods to be used for tax accounting. It also sets rules for the
calculation of gains and losses and on tax residence and permanent establishments.
The Act includes a general anti-avoidance rule, rules on income splitting, and transfer pricing rules.
In addition, the Act establishes rules governing the taxation of partnerships
and trusts, and prescribes special rules for different industries.