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The Ghana Revenue Authority (GRA) has addressed concerns regarding the tax status of individuals earning incomes abroad, clarifying the criteria for determining “resident individuals” for tax purposes.
According to the GRA, the definition of a resident individual for tax purposes is outlined in the Income Tax Act 2015 (Act 896), Sections 3 (2) (a), 103, and 111.
Key points of clarification include:
1. Individuals who are citizens with a permanent home in Ghana and reside in the country throughout the year are considered resident for tax purposes.
2. Individuals who are present in Ghana for at least 183 days in any 12-month period that begins or ends within the year are also considered resident for tax purposes.
3. Government employees or officials posted abroad are included in the category of resident individuals.
4. Citizens who are temporarily absent from Ghana for not more than 365 continuous days but maintain a permanent home in Ghana are also considered resident for tax purposes.
To facilitate the declaration and payment of taxes for resident individuals with undisclosed incomes, the GRA has opened a special window for taxpayers to rectify their records. All eligible individuals are encouraged to utilize this opportunity to regularize their tax affairs.
