GRA Clarifies Tax Obligations for Ghanaians Earning Abroad – Details and Criteria
The Ghana Revenue Authority (GRA) has recently specified that only four distinct categories of Ghanaian residents who earn income abroad fall under their scope for taxation. This specification aims to address the rising concerns and misunderstandings following GRA’s announcement about targeting incomes from foreign sources.
In January, the GRA conducted a tax assessment involving approximately 70,000 Ghanaians residing in the country but earning from 40 different countries. This assessment revealed about GHS 2.8 billion held in their bank accounts, with an anticipated GHS 1.6 billion in tax revenues.
The clarification by the GRA comes amid widespread discussions, with some individuals expressing concerns over the perceived shift in government policy from production to taxation.
Understanding Resident Status for Tax Purposes
According to the Income Tax Act 2015 (Act 896), the criteria to qualify as a resident individual for tax purposes include:
- Citizens with a permanent home in Ghana who reside in the country throughout the year.
- Citizens who are present in Ghana for at least 183 days in any 12-month period.
- Government employees or officials who are stationed abroad.
- Citizens who are temporarily absent from Ghana for no more than 365 continuous days but maintain a permanent home in the country.
GRA’s Measures for Tax Compliance
The GRA emphasizes that this tax requirement is not new and aligns with global practices where resident individuals must declare incomes earned abroad. If these incomes have already been taxed in another country, no additional taxes are applied locally.
To aid residents in declaring and paying taxes on undisclosed foreign incomes, the GRA has initiated a special window. This facility encourages all eligible individuals to update their tax records and ensure compliance.
For More Information
Residents seeking further information or assistance can visit the GRA website at www.gra.gov.gh, call the toll-free number at 0800-900-110, or use the dedicated WhatsApp lines at 0552-990-000/0200-631-664. Additionally, inquiries can be directed to [email protected] or by visiting any nearby Taxpayer Service Centre (TSC).
