Enforce law on withholding tax


Mr. Kingsley Nketsia – Dardom addressing the participants

Stakeholders have urged the Medium Tax Office (MTO) of the Ghana Revenue Authority (GRA), to ensure compliance with law on withholding tax, and expedite action on the issuance of withholding certificates to tax payers.

They also suggested that, efforts should be made to include more business operators in the informal sector in the tax net, to increase revenue for development.

Participants raised these concerns at a tax education seminar, organised by the GRA, to educate them on the Income Tax Act, Act 896, 2015, for medium tax payers, here on Tuesday

According to the new tax law, withholding tax is deducted at source by an authorised agent and accounted for later to the Commissioner General (CG) of the GRA within 15 days after the end of the month in which the tax was withheld.

Inaddition, returns or all details concerning the payment are also submitted to the CG.

XXXA Senior Revenue Officer of the MTO in Takoradi, Mr. Kingsley Nketsia-Dardom, said: “withholding certificate shall cover the calendar month and shall be served on the withholdee within   30 days after the end of the month.The payee shall use the tax credit certificate to offset his/her tax liability for basis period ending within the year of   assessment for which the returns   is filed.”

He explained that the tax concessions under the new law, include tree crops of about 10 years from first harvest, one per cent, cash crops or livestock other than cattle farming, one per cent, cattle farming, one per cent, agro-business, five year in commercial farming, five per cent, rural banking of years, waste processing after seven years and income venture, one per cent, respectively.

A free zone developer for the first 10 years attracts zero per cent, under the Free Zones Act 1995, ACT 504, Mr. Nketsia-Dardom said.

The Head of the MTO in the Western Region, Mr. George Amankwa-Boateng, appealed to the participants to contact the office on the withholding tax and certificates, assuring that the GRA was ready to resolve issues affecting tax payers.

He appealed to tax payers to ensure that they voluntarily complied with the tax obligations, and that “We are operating in good faith and  openness for better services, we are moving away from the old ways and we also want to widen the tax net with the informal sector as we intensify education.”

From Clement Adzei Boye, Takoradi



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