HOW YOU CAN PAY YOUR TAX

When you start business either as a Sole Proprietor, Partnership or a Limited Liability Company, you need to go to the Tax Office nearest your business to register. You require the following documents to register.

The Internal Revenue ACT, 2000 (ACT 592) charges any person who earns income from employment, business and investment to pay tax on a yearly basis.

Any person engaged in business shall furnish a return of income for a year of assessment not later than 4 months after the end of a basis period ending within the year. The return of income shall be in the form and manner prescribed by the Commissioner, and state the information required. Examples of the return forms are Income Tax Form 21 for Individuals, Income Tax Form 21A for Employees with employment income only, Income Tax Form 22 for Partnerships and Income Tax Form 22A for Companies. The return shall include a declaration that it is complete and accurate and it shall be signed by the person making it.

WHAT ARE TAX INCENTIVES?

Tax incentives are concessions, provisions and conditions made available to taxpayers to serve as a means of reducing the tax liability and lessening the tax burden on taxpayers, motivation and encouragement they are also meant to boost and sustain investment in the economy, Others are also designed to encourage investments in rural areas to stem the tide of migration to the cities and towns.

In what sectors does the Internal Revenue Act, 2000 (Act 592) provide incentives?
The Act provides incentives in various sectors of the economy. These include agriculture, real estate, rural banking and the Ghana Stock Exchange.

FILING OF OBJECTION

The Internal Revenue Act, 2000 (Act.592) provides for four (4) different assessments. A person who is dissatisfied with any of the assessments may lodge an objection to the Commissioner within a time period. With provisional assessment, a person may lodge an objection within nine (9) months of the commencement of the basis period to which the provisional assessment relates. In the case of Final Assessment a person may lodge an objection within 30 days of the service of the notice of assessment. With regard to self assessment, because of the revised estimate, there is no heed for objection as the person assesses himself. An additional assessment shall be treated as any assessment under the Act.

This page explains the procedure for making a tax objection and an appeal.
The procedure is laid down by law. (See Internal Revenue Act. 2000 (ACT 592) Sections 128 to 132).
Usually an agreement is reached by correspondence or discussion with the Tax Office to settle things thus saving you time and trouble. The onus is on you the taxpayer to prove that the tax assessment is excessive or incorrect.

WHAT IS A TAX RELIEF?
A tax relief is an approved deductible allowance intended to reduce your taxable income and thereby lessen your tax burden. Your personal circumstances are always taken into consideration. For example, a married person with children attending school will normally be harder pressed than a single person with no dependants. Therefore in all progressive tax administrations, as obtains in Ghana, your position in relation to your commitments is considered by granting you reliefs to lighten the tax burden.

Tax Clearance Certificate (TCC) is proof that the taxpayer has honoured his tax obligations for the Year of Assessment. The TCC may be required in the following transactions:

• To clear goods in commercial quantities from port or factory.

• To effect the registration of a document conferring title to land i.e. to register a land document

• To bid for contract

• To obtain visa from Embassies and High Commission