INCOME TAX (AMENDMENT) (NO.2) ACT, 2016 ACT 924
ARRANGEMENT OF SECTIONS
Section
1.Section
6 of Act 896 amended
2.Section
7 of Act 896 amended
3.Section
15 of Act 896 amended
4.Section
30 of Act 896 amended
5.Section
77 of Act 896 amended
6.Section
78 of Act 896 amended
7.Section
89 of Act 896 amended
8.Section
97 of Act 896 amended
9.Section
116 of Act 896 amended
10.Section
119 of Act 896 amended
11.Section124
of Act 896 amended
12.Section
125 of Act 896 amended
13.Section
130 of Act 896 amended
14.Section
135 of Act 896 amended
15.First
Schedule to Act 896 amended
16.Third
Schedule to Act 896 amended
17.Sixth
Schedule to Act 896 amended
REPUBLIC OF GHANA
THE NINE HUNDRED AND TWENTY-FOURTH
ACT
OF THE PARLIAMENT OF THE REPUBLIC OF GHANA
ENTITLED
INCOME TAX (AMENDMENT) (NO.2) ACT, 2016
AN ACT to amend the Income Tax Act, 2015 (Act 896)
and for related matters.
DATE OF ASSENT: 9th September, 2016.
Passed by Parliament and assented to by the
President:
Section 6 of Act 896 amended
1. The Income Tax Act, 2015 (Act 896) referred to in
this Act as the "principal enactment" is amended in
paragraph (a) of subsection (2) of section 6
by the substitution for subparagraph (v), of
"(v) a gift received by a person other than a gift
received in respect of business or employment;".
Section 7 of Act 896 amended
2. The principal enactment is amended in subsection
(l) of section 7
(a)
by the deletion of "and" after paragraph (p);
and
(b)
by the insertion after paragraph (q), of
paragraphs (r) and (5) "(r) interest
paid to a non-resident person on bonds issued by the
government of Ghana; and
(5) gains from the realisation of bonds issued by
the Government of Ghana by a non-resident person.".
Section 16 of Act 896 amended
3. The principal enactment is amended in section 16
by the substitution for paragraph (b) of
subsection (1), of
"(b)
fifty percent of the chargeable income of the person
for the year from the business or investment
calculated without
(i) including a financial gain derived by the
person; or
(ii) deducting a financial costs incurred by the
person.".
Section 30 (J f Act 896 amended
4.
The principal enactment is amended in section 30 by
the insertion
after subsection (4), of
"(5) A lessor who leases an asset under an operating
lease
(a)
shall, in calculating the income of the lessor,
include the whole amount of rent paid under the
lease; and
(b)
may be granted capital allowance with respect to the
asset in accordance with the Third Schedule." .
Section 77 of Act 896 amended
5. The principal enactment is amended in subsection
(l) of section 77 by the substitution for "mining",
of "mineral".
Section 78 of Act 896 amended
6.
The principal enactment is amended in section 78 by
the deletion of
(a)
paragraph (b) of subsection (3); and
(b)
subsection (4).
Section 89 of Act 896 amended
7. The principal enactment is amended in section 89
by the insertion after paragraph (b) of
subsection (2), of •
"(c)
the amount of any reserve for unexpired risk
deducted in the previous basis period.".
Section 97 of Act 896 amended
8.
The principal enactment is amended in paragraph
(a) of sll'bsection
(2) of section 97 by .
(a)
the insertion of "or" after subparagraph (ii);
(b)
the deletion of "or" and the insertion of "and"
after subparagraph (iii); and
(c)
the deletion of subparagraph (iv).
Section 116 of Act 896 amended
9. The principal enactment is amended in section 116
by the substitution for subsection (8) of
"(8) This section does not apply to
(a)
a payment subject to withholding under section 114;
or
(b)
a payment that is an exempt amount." .
Section 119 of Act 896 amended
10.
The principal enactment is amended in section 119 by
the deletion of paragraphs (e), (f) and
(g) and the insertion of
"(e)
payments made to a person under section 1 16 (1)(a)(ii)
and (iii); and
(f)
lottery winnings.".
Section 124 of Act 896 amended
11.
The principal enactment is amended in subsection (1)
of section 124 by the substitution for "year of
assessment", of "basis period".
Section 125 of Act 896 amended
12.
The principal enactment is amended in section 125 by
the substitution for paragraph (a) of
subsection (1), of
"(a)
a resident individual who does not have tax payable
for the year under section l(I)(a); or".
Section 130 of Act 896 amended
13.
The principal enactment is amended in subsection (4)
of section 130 by
(a)
the deletion of "and" after paragraph (e);
(b)
the substitution for paragraph (f), of
"(f) dividends of a company;"; and
(c)
by the insertion after paragraph (f), of "(g)
depreciation of a fixed asset.".
Section 135 of Act 896 amended
14.
The principal enactment is amended in section 135 by
the renumbering of subsection (5) as subsection (4).
First Schedule to Act 896 amended
.
15.
The principal enactment is amended in the First
Schedule by (a) the insertion after
subparagraph (3) of paragraph 1, of
"(4) Where an individual receives a gift other than
a gift received in respect of business or
employment, the individual may elect to pay tax at
the rate of fifteen percent. (5) The remainder of
the chargeable income of the individual is taxed at
the rate referred to in subparagraph (1) or (2) as
the case requires."; and
(b)
the insertion after subparagraph (6) of paragraph 3,
of
"(6A) The income tax rate applicable to the
chargeable income of a business referred to in
subparagraphs (1), (2) and (3) of the Sixth Schedule
for the next five year period
after the temporary concession period is:
|
LOCATION |
RATE OF INCOME TAX |
|
Accra and Tema |
20% |
|
Other Regional Capitals outside the
|
15% |
|
Northern Savannah Ecological Zone
|
|
|
Outside other Regional Capitals |
10% |
|
The Northern Savannah Ecological Zone
|
5% |
In this subparagraph 'Northern Savannah Ecological
Zone' has the meaning provided in the Savannah
Accelerated Development Authority Act, 2010 (Act
805).
Businesses that benefit from these concessions do
not qualify for any other location incentives
available to manufacturing businesses. ";
(c)
the insertion after sub sub subparagraph (vii) of
subsubparagraph (c) of subparagraph (1) of
paragraph 8, of "(vii A) in the case of service fees
referred to in subparagraph (vii) of paragraph
(a) of subsection (1) of section 116, seven and
a half percent;"; and
(d)
the substitution for subparagraph (2) of paragraph
8, of "(2) The rate of tax to be withheld from the
payment to which subsection (4) of section 71
applies is,
(a)
in the case of a non-resident person, fifteen
percent; and
(b)
in the case of a resident person, seven and a half
percent.
Third Schedule to Act 896
amended
16.
The principal enactment is amended
(a)
in subparagraph (1) of paragraph 1 of the Third
Schedule by the substitution for item (ii) of the
information corresponding to Class 2 depreciable
assets, of "(ii) Assets resulting from expenses
referred to in subparagraph (5) in respect of long
term crop planting costs. ";
(b)
in subparagraph (3) of paragraph 3 of the Third
Schedule by the substitution for "subparagraph (3)",
of "subparagraph (4)"; and
(c)
in subparagraph (4) of paragraph 4 by the insertion
between
"associate" and "the", of "of".
Sixth Schedule to Act 896 amended
17.
The principal enactment is amended
(a)
in subparagraph (1) of paragraph 1 of the Sixth
Schedule by the substitution for "individual"
wherever it appears in that subparagraph, of
"person"; and
(b)
by the substitution for sub subparagraph (b)
of subparagraph (1) of paragraph 1, of
"(b)
in the case of farming livestock other than cattle,
fish or cash crops, income from the business for a
period of five years of assessment commencing from
the year in which the business commences; and" .
Date of Gazette notification: 9th September,
2016.
7
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