Electricity VAT: GRA clarifies decision to tax resident Ghanaians

The Ghana Revenue Authority (GRA) has clarified its decision to tax the foreign incomes of resident Ghanaians as replacement for the value-added tax (VAT) on electricity.

In response, GRA on April 15 announced the decision to tax foreign incomes to make p for the revenue gap.

The statement explained individuals considered residents for tax purposes include citizens; with a permanent home in Ghana residing in the country throughout the year, present in Ghana for at least 183 days in any 12-month period that begins or ends within the year, government employees or officials posted abroad, etc.

Gov’t to tax foreign incomes of Ghanaian residents as electricity VAT replacement

The Ghana Revenue Authority (GRA) has noted concerns raised by the general public on the tax status of individuals who earn incomes abroad and whether they are deemed by the Tax laws as “resident individuals” for tax purposes.

Are citizens with a permanent home in Ghana residing in the country throughout the year

Are citizens temporarily absent from Ghana for not more than 365 continuous days who maintain a permanent home in Ghana