GRA clarifies tax status of resident individuals who earn incomes abroad

The Ghana Revenue Authority (GRA) has provided clarity on the tax status of individuals who earn incomes abroad and whether they are deemed by the tax laws as “resident individuals” for tax purposes.

In a statement issued by the Authority on April 22, 2024, it outlined that the legal definition of a resident individual for tax purposes is grounded in the Income Tax Act 2015 (Act 896), Sections 3 (2) (a), 103, and 111.

It further listed the individuals considered resident for tax purposes;

1. Are citizens with a permanent home in Ghana residing in the country throughout the year.

2. Are present in Ghana for at least 183 days in any 12-month period that begins or ends within the year.

3. Include government employees or officials posted abroad.

4. Are citizens temporarily absent from Ghana for not more than 365 continuous days who maintain a permanent home in Ghana.

The GRA further said to facilitate easier declaration and payment of taxes for resident individuals to report undisclosed incomes, it has opened a special window for taxpayers to rectify their records.

“All eligible individuals are strongly encouraged to utilize this opportunity to regularize their tax affairs,” the GRA noted.

The decision to fully implement existing tax compliance measures comes as part of the government’s efforts, in collaboration with the Ministry of Finance and GRA, to find a long-term solution to the country’s fiscal needs, especially in revenue mobilization.

The move is expected to credibly replace the projected GH¢1.8 billion in revenue target, marking a significant shift in the nation’s tax policy landscape.