Ghana Introduces New Income Tax Law

by Lorys Charalambous, Tax-News.com, Cyprus

14 December 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.

TAGS: individuals | compliance | tax | investment | business | tax compliance | mining | law | accounting | banking | insurance | trusts | corporation tax | oil and gas | legislation | transfer pricing | tax breaks | individual income tax | Ghana | Tax