Income earned from investments to be taxed from January

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From January 1, 2016 any income earned form some investments by individuals will be taxed.

The action has been influenced by changes in the country’s income tax, which will see 1 percent levied as withholding tax on all interest earned on investment accounts.

According to sources close to government, the decision was taken because government wants to expand the tax net to help improve revenue.

This should mean that if you invest in Treasury Bills or Bonds, you have to pay 1 percent of the income earned to government.

The review in the Income tax ACT will also result in foreign investors pay 8 percent tax on all income earned from investments.

Meanwhile, the Executive Director of investment banking firm, C-Nergy Ghana, Mike Cobblah said the introduction of the tax might affect efforts to encourage more people to invest and buy government bonds.

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