The Ghana Revenue Authority (GRA) has signed an information sharing agreement with 170 countries across the world to support the implementation of the tax on resident Ghanaians who earn income from abroad.

According to the GRA, the tax is an existing policy which was passed in 2016 but lacked adequate data to implement it at the time.

The GRA also dismissed claims that the law is a new tax to replace the VAT on electricity.

The Chief Revenue Officer, in charge of Freezones at the Domestic Tax Division, Dominic Adamnor Nartey emphasized that the law has been on the books for over 5 years.

 “This is not a new tax, it has been in the law since 2016. Anyone in Ghana who earns income outside the country is supposed to consolidate all incomes whether in Ghana or outside then subject that to tax.

So this has been in the law already and not necessarily a new tax. We have signed a pact with other countries and we now have adequate information to enforce the law”, he said.

He pointed out that the policy required information before it could be implemented.

“Now that we have signed the agreement with about 170 countries and ready to share information with us, it is prudent that we pursue it”.

He advised the public to seek education on the policy to understand how it will be implemented.

“It is not just about paying money, you just bring a certificate that indicate if you have already paid taxes on these income and that ends the matter. It is not necessary that one must pay tax on an income you have already paid tax in the foreign country” he said.

About the policy

The provision falls under the Special Voluntary Disclosure Programme (SVDP) which provides or gives an opportunity to non-compliant persons (individuals and entities) to disclose offshore assets and income to the GRA to regularize their tax affairs without incurring any penalties.

The policy is in line with the Multilateral Competent Authority Agreement (MCAA) and the Standard for Automatic Exchange of Financial Account Information in Tax Matters Act, 2018 (Act 967).