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IN exercise of the powers
conferred on the Minister
responsible for Finance by section
73 of the Income Tax Decree, 1975
(S.M.C.D. 5) these Regulations are
made this 10th day of June, 1982.
Regulation 1—Regulation 1 of
Principal Regulations Replaced.
The Income Tax Regulations, 1980 (L.I.
1252) in these Regulations
referred to as the “principal
Regulations" are hereby amended by
the substitution for regulation 1
thereof of the following new
regulation—
"1. Deduction of Tax.
Every employer shall deduct income
tax each month from the total
emoluments payable by him to any
person at the appropriate rate
specified in the Schedule hereto."
Regulation 2—Regulation 2 (1) of
Principal Regulations Replaced.
For subregulation (1) of
regulation 2 of the principal
Regulations there is hereby
substituted the following new
subregulation—
"2. Total Emoluments
(1) The total emoluments shall
include salary, all cash
allowances, or benefits in kind
paid to or on behalf of the
employee on account of housing,
use of a motor vehicle provided by
the employer, petrol coupons,
stewards, drivers, personal
servants or other similar persons,
in accordance with section 13 and
the Second Schedule to the Income
Tax Decree, 1975:
Provided that any allowances
including entertainment allowance
paid to an employee as
reimbursement of expenses incurred
by him on behalf of his employer
shall qualify for tax exemption
only where the employee accounts
for the expenditure."
Regulation 3—Regulation 23 of
Principal Regulations Replaced.
For regulation 23 of the principal
Regulations there is hereby
substituted the following—
“PART V—WITHHOLDING FROM
CONTRACTUAL PAYMENTS
"23. Deductions made from Payments
in Respect of Contracts, Services,
etc.
(1) Subject to subsection (4) of
this section where any sum of
money becomes due and payable by
the Government or by any
prescribed body to any person in
respect of any work done, executed
or services rendered or any goods
sold by that person in or towards
the performance of any contract
(whether in writing or not)
entered into between that person
and the Government or that
prescribed body or in
consideration of any conveyance or
lease or hiring of any property by
that person to the Government or
that prescribed body, the officer
or the person responsible for
effecting the payment shall deduct
from such sum five per centum of
that sum:
Provided that companies which to
the satisfaction of the
Commissioner of Income Tax
prefinanced Government contracts
shall be exempt from the deduction
prescribed by this subregulation,
if such companies have a tax
clearance certificate from the
said Commissioner stating that no
tax is due from them.
(2) In this regulation “prescribed
body” means a corporation, agency,
authority or other body over which
the Government has control or in
which the Government has a
financial interest.
(3) Subject to subsection (4) of
this section where any money
becomes due and payable by a bank,
a limited liability company, a
partnership or a co-operative to
any person in respect of any work
done, executed or services
rendered or any goods sold by that
person in or towards the
performance of any contract
(whether in writing or not)
entered into between that person
and the bank, the limited
liability company, the partnership
or co-operative or in
consideration of any conveyance or
lease or hiring of any property by
that person to any of the
aforementioned organisations, the
officer responsible for effecting
the payment shall deduct from such
sum, five per centum of that sum.
(4) No deductions shall be made
under this section—
(a) in respect of a contract the
value of which does not exceed
¢100.00; or
(b) in respect of a contract for
the sale of goods by one company
to another company, if both
companies are engaged in
commercial enterprise and the
goods constitute their stock in
trade."
Regulation 4—Regulation 24 of
Principal Regulations Amended.
Regulation 24 of the principal
Regulations is hereby amended by
the substitution for subregulation
(1) thereof of the following new
subregulation—
"24. Deductions of Tax from
Directors’ fees, Etc.
(1) Every company or corporation
or body which pays fees to
directors or board members or
which pays commissions to
insurance agents shall withhold
from such payments tax at the rate
of fifteen per centum."
Regulation 5—Schedule to Principal
Regulations Replaced
The Schedule to the principal
Regulations is hereby replaced by
the following new Schedule:—
“SCHEDULE
PART I
MONTHLY DEDUCTIONS—RESIDENTS
Monthly Chargeable
Income Income Tax
Payable Monthly Chargeable
Income Income Tax
Payable Monthly
Chargeable Income
Income Tax Payable
¢
251252 253 254 255 256 257 258 259
260 261 262 ------------ 287.38
NOTES:
(i)
For the purpose of ascertaining
the income tax payable, any odd
pesewas on the monthly chargeable
income should be regarded as
¢1.00.
(ii) For monthly chargeable income
of over ¢1,125.00, the rate of tax
is 60 pesewas for every additional
¢1.00.
PART 2
MONTHLY DEDUCTIONS—NON-RESIDENTS
Every individual not resident in
Ghana shall pay income tax at a
rate of not less than 35 per
centum of his total monthly income
earned in, or derived from, Ghana,
or at the rates specified in Part
I of the Schedule, whichever is
the greater.”
DR. KWESI BOTCHWAY
Provisional National Defence
Council Secretary For Finance and
Economic Planning
Date of Gazette Notification :
11th June, 1982. |
