Snapshot of Taxation in Ghana

Ghana’s tax regime is regulated by several tax legislation including the Income Tax Act 2015 (Act 896) which came into effect on January 1, 2016. To read more on the taxation regime in Ghana, read the article Snapshot of Taxation in Ghana here.

Tax

The income tax laws of Ghana have been revised and consolidated into one tax code, the Income Tax Act, 2015 (Act 896) as amended (the ITA).

The ITA came into force on 1 January 2016. It has widened the tax base by making Ghana’s income tax rules applicable to the world-wide income of tax-resident companies, and restricting the utilization of capital allowance with respect to depreciating assets to the year to which the allowance relates. Any part of that capital allowance that is not utilized within the year is written off. Previously, the scope of application of income tax rules was limited to income accruing from a source in Ghana, and any part of capital allowance that was not utilised could be carried over for up to five years.

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