Under the Ghana Companies Act 2019, Act 992 a branch is “a body corporate formed or incorporated outside Ghana but has established a place of business in the country”. Simply put, a branch is a foreign company that has created a presence in Ghana to do business. The income earned by the branch from its […]
Category Archives: Tax
29
May
May
If you have ever dealt with Ghana’s withholding tax system, you know it a costly and hassle filled experience! If you do not know what withholding tax is, and what to expect after they withhold taxes, you are in for a painful experience. In this blog, we discuss the withholding challenges, and what you can […]
21
May
May
On 31 March 2021, Parliament passed the Penalty and Interest Waiver Act 2021 (Act 1065) into law. Before this, the tax laws gave the Commissioner the power to waive or remit penalties. It was not clear if this provision covered interests on outstanding taxes as well. The Penalty and Interest Waiver Act 2021 has extended […]
25
Apr
Apr
“How is tax on bonuses computed?” is a frequently asked question. This article discusses how we treat bonus taxes in a payroll computation. What is a Bonus? Bonus is an incentive pay given on top of the employee’s usual compensation (basic salary). Types of Bonus In our work as an outsourced payroll service provider, we […]
12
Dec
Dec
SCG Chartered Accountants recently held a webinar titled “Navigating Withholding Tax Audits”. The presenters discussed: Common issues that arise from Withholding Tax Audits. Challenges faced by taxpayers Ways to stay compliant. Below is a summary of the discussion. Common Issues Failure to withhold from payments made to third parties Application of wrong rates, especially payments […]
30
May
May
The VAT Flat Rate Scheme (VFRS) What is the VAT Flat Rate Scheme (VFRS)[1], who qualifies for it, and how does it affect your business? In this article we consider these questions. What is the VAT Flat Rate Scheme? The VAT Flat Rate Scheme (VFRS) is a special scheme which allows people who qualify to […]
22
May
May
Under the Income Tax Act of 2015, an individual who has a mortgage can deduct interest paid during the year in calculating his taxes. When do you get the mortgage interest benefit? Do you get the benefit at the time you file your annual tax returns, or do you get it as you pay income […]
16
May
May
How owners finance a company has tax implications. Interest on loans is deductible for tax purposes, but dividends are not deductible. Loans are also easier to raise than equity. So, business owners often finance their businesses with a mix of equity and debt. Thin capitalization refers to the proportion of debt financing. According to Ghana […]
01
Feb
Feb
Ask a layman, “how is your income tax computed?” You may get a blank stare! Accounting and tax laws determine what goes into calculating your taxes. This makes it hard to comprehend for many people. Yet at a high level, the process of computing income tax is straightforward, and it involves five steps: Determine assessable […]
04
Jan
Jan
Early preparation is the best way to avoid tax trouble and reduce your taxes. This blog discusses the issues you must address as 2019 ends. So, what must you consider? Here’s a snapshot of the issues to ponder: Obtain Taxpayer Identification Number (TIN) for all your employees Withhold the appropriate taxes from all payments made […]
