The Ghana Revenue Authority (GRA) has indicated that key policies in the country’s tax administration laws are expected to be implemented from July 1, 2025.

This is to boost the domestic revenue drive for the government.

These include the Modified Taxation Scheme, VAT on Real Estate, and VAT on Non-Life Insurance.

Modified Taxation Scheme

The Modified Taxation Scheme (MTS) is a simplified approach for the informal sector.

The MTS introduces a flexible framework targeting micro small and medium businesses across the country.  This is in line with the Income Tax Act, 2015 (Act 896).

Acting Commissioner-General of the GRA, Anthony Kwasi Sarpong, clarified in a recent media engagement that the scheme is not an additional tax, but a simplified method of calculating personal income tax for eligible traders and entrepreneurs.

“We as GRA are tax implementors and as the President [John Mahama] has announced and reiterated by the Minister of Finance [Dr. Cassiel Ato Forson], the country must mobilise more revenue so that we can take care of critical budgetary allocations as many of the donor partners have closed their doors to Ghana. What we need to do is to look at the existing revenue handles and implement it to the latter".

"We believe that if we’re able to do these, then we can seal many of the revenue loopholes that are being closed onto us as a country. I can assure you that these are not new taxes and it is not intended to overburden Ghanaians but rather to support the resetting of the economy” he noted.

Key Highlights of the Scheme:

•             Eligibility: Ghanaian residents earning income solely from business activities within the country.

•             Tax categories:

o             Presumptive Tax Based on Installments (PTI): Fixed quarterly payments (up to GH¢45) for businesses with an annual turnover below GH¢20,000.

o             Presumptive Tax Based on Turnover (PTT): A flat 3% rate for businesses earning between GH¢20,000 and GH¢500,000 annually.

o             Modified Cash Basis (MCB): For businesses exceeding GH¢20,000, applying graduated rates with allowable deductions.

•             Multiple payment options, including mobile money, USSD codes (*222#), and bank deposits.

•             Simplified registration via GRA offices or a dedicated mobile app.

Alongside the Modified Taxation Scheme, the GRA is implementing several other strategic initiatives designed to plug revenue leakages and broaden the tax base. These measures form part of the government's comprehensive strategy to reduce reliance on debt financing and strengthen domestic revenue mobilisation.

The Special Voluntary Disclosure Programme (SVDP), which was rolled out in 2024, is being deepened. It is an initiative that seeks to give expression to the income tax law and resident persons who earn incomes abroad.

This programme provides an opportunity to these persons to voluntarily disclose incomes earned abroad, which they haven’t paid tax on without incurring penalties.

VAT on Real Estate

The VAT on the Rental of Immovable Property and the Supply of Immovable Property by Estate Developers will also be implemented in accordance with the provisions of the Value Added Tax (VAT) Amendment Act, 2023 (Act 1107), all estate developers are to charge VAT on the supply of immovable property

Estate developers are to charge a 5% VAT on:

•             Immovable property by an estate developer calculated on the taxable supply

•             Immovable property for rental purposes, other than for accommodation in a dwelling or a commercial rental establishment

A 1.0% COVID -19 levy is also applicable on the supply of immovable property.

Additionally, an appointed withholding agent who fails to charge and account for the tax to the Commissioner-General by the 15th of the month following the due date shall be liable to pay the VAT that should have been withheld, along with a penalty of thirty percent (30%) of the amount.

Exemptions for residential dwellings and agricultural properties.

VAT on Non-Life Insurance

As stipulated in VAT (Amendment) Act, 2023 (Act 1107), insurance premiums covered for VAT purposes include fire, marine, liability, property, indemnity, engineering, travel, burglary, personal accident and workmen’s compensation insurance.

Insurance companies must therefore take note and charge a 15% VAT on all insurance premiums covered under this provision.

To make the implementation more effective, the companies are expected to:

•             Update their accounting and invoicing systems to incorporate the VAT;

•             Train staff on the application and reporting on the VAT;

•             Communicate proactively with clients about the changes; and

•             Ensure timely registration for VAT, if not already registered

The combination of these measures, GRA, said represents a balanced approach to revenue generation.

Meanwhile, the authority is creating multiple pathways for compliance while ensuring critical sectors contribute their fair share.