GRA clarifies taxation of foreign incomes of resident Ghanaians

In a statement released on Monday, April 22, the GRA defended its decision and outlined the criteria for individuals subject to the tax, including citizens with permanent homes in Ghana, those residing in the country for at least 183 days within a 12-month period, and government employees or officials stationed abroad.

The decision to tax foreign incomes comes in response to the suspension of the Value Added Tax (VAT) on electricity, which created a significant revenue gap estimated at approximately GH¢1.8 billion.

To facilitate compliance with the new taxation policy, the GRA has initiated a special window for taxpayers to rectify their records in preparation for the rollout of the tax.

Below is the clarification given by GRA:

Individuals considered resident for tax purposes:

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

2. Are present in Ghana for at least 183 days in any 12-month period that begins or ends within the year

3. Include government employees or officials posted abroad

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

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.