Ghana amends various Tax Acts - EY - United States

1 Executive summaryThe Parliament of Ghana passed several amendments to various tax acts . The majority of the acts were assented to on 15 March 2017 and gazette notifications issued the same day. Accordingly, the acts came into force on 15 March. Amendments to the Value Added Tax (VAT) Act came into force on 5 April, following the President s Assent and gazette modified acts include: The Income Tax (Amendment) Act, 2017 (Act 941) The Value Added Tax (Amendment) Act, 2017, (Act 948) The Special Petroleum Tax (Amendment) Act, 2017 (Act 942) The Customs Excise (Petroleum Taxes and Petroleum related Levies) Repeal Act, 2017, (Act 943) The Special Import Levy (Amendment) Act, 2017 (Act 944)This Alert summarizes the key May 2017 Global Tax AlertGhana amends various Tax ActsEY Global Tax Alert LibraryAccess both online and pdf versions of all EY Global Tax into your web Tax Alert Detailed discussionGains realized from securities listed on the Ghana Stock ExchangeThe Income Tax (Amendment) Act, 2017 (Act 941) was principally enacted to exempt gains derived from the realization of securities listed on the Ghana Stock Exchange from tax through 31 December 2021.

2 Accordingly, persons who derive gains from the realization of securities listed on the Ghana Stock Exchange shall not be liable to pay any tax on the amendmentsThe Value Added Tax (Amendment) Act, 2017, (Act 948) was principally enacted to: Classify the supply of financial services, domestic transportation of passengers by air and the supply of immovable property by a real estate developer as exempt supplies Establish a VAT Flat ate Scheme which will aid the collection of VAT and National Health Insurance Levy (NHIL) on the supply of goods in the distribution chainSome of the key issues covered by the Act include:1. A taxable person who is a retailer or wholesaler is required to account for VAT and NHIL and at the rate of 3% calculated on the value of the taxable The VAT Flat Rate Scheme does not apply to any form of supply of power, heat, refrigeration or Taxable persons under the VAT Flat Rate Scheme shall not qualify for input tax deduction provided for in the main The VAT Flat Rate Scheme has been defined in the The following have been added as exempt supplies under the First Schedule of the main Act.

3 The supply of domestic transportation by air The supply of residual fuel as a hydrocarbon product The supply of immovable property, including land, used or intended to be used for dwelling The supply of financial servicesReduction of the Special Petroleum Tax rateThe Special Petroleum Tax (Amendment) Act, 2017 (Act 942) was principally enacted to reduce the rate of the Special Petroleum Tax on the ex-deposit price of petroleum products listed in the schedule of the main Act (Act 879).The rate of Special Petroleum Tax has been reduced from to 15% and is to be calculated on the ex-deposit price of petroleum products listed in the schedule of the Special Petroleum Tax Act, 2014, Act 879 (as amended).Repeal of the Customs Excise (Petroleum Taxes and Petroleum related Levies) Act, 2015 (Act 685).The Customs Excise (Petroleum Taxes and Petroleum related Levies) Repeal Act, 2017, (Act 943) was principally enacted to repeal the Customs Excise (Petroleum Taxes and Petroleum related Levies) Act, 2015 (Act 685).

4 The Customs Excise (Petroleum Taxes and Petroleum related Levies) Act, 2015, Act 685 has been repealed with effect from 15 March to Act 943, any rights, liabilities and obligations in existence before this Act came into force shall continue to exist until concluded or of the Special Import Levy on specific imported goodsThe Special Import Levy (Amendment) Act, 2017 (Act 944) was principally enacted to remove the levy payable on specific imported Special Import Levy Act, 2013, (Act 861) has been amended by the substitution of the Second Schedule of Section 2 of the following:S/NoDescription of GoodsRate of goods except the Petroleum Products listed under Headings and of Chapter 27, Fertilizer listed under Chapter 31, and Machinery and Equipment listed under Chapters 84 and 85 of the Harmonized System and Customs Tariff Schedules, of CIF ValueGlobal Tax Alert3 Endnote1. VAT Flat Rate Scheme has been defined in the Act as Value Added Tax collection and accounting mechanism that applies a marginal tax percentage representing net VAT payable on the value taxable goods additional information with respect to this Alert, please contact the following:Ernst & Young Ghana , Accra Robin McCone +233 302 774 9868 Isaac Sarpong +233 302 774 9868 & Young Advisory Services (Pty) Ltd.

5 , Africa ITS Leader, Johannesburg Justin Liebenberg +27 11 772 3907 & Young LLP ( United Kingdom), Pan African Tax Desk, London Leon Steenkamp +44 20 7951 1976 Byron Thomas +44 20 7951 4144 Gon alo Dorotea Cevada +44 20 7951 2162 & Young LLP, Pan African Tax Desk, New York Silke Mattern +1 212 360 9707 Dele A. Olaogun +1 212 773 2546 Jacob Shipalane +1 212 773 2587 & Young LLP, Pan African Tax Desk, Houston Elvis Ngwa +1 713 750 5941 | Assurance | Tax | Transactions | AdvisoryAbout EYEY is a global leader in assurance, tax, transaction and advisory services. The insights and quality services we deliver help build trust and confidence in the capital markets and in economies the world over. We develop outstanding leaders who team to deliver on our promises to all of our stakeholders. In so doing, we play a critical role in building a better working world for our people, for our clients and for our refers to the global organization, and may refer to one or more, of the member firms of Ernst & Young Global Limited, each of which is a separate legal entity.

6 Ernst & Young Global Limited, a UK company limited by guarantee, does not provide services to clients. For more information about our organization, please visit 2017 EYGM Limited. All Rights no. 03449-171 Gbl1508-1600216 NY ED NoneThis material has been prepared for general informational purposes only and is not intended to be relied upon as accounting, tax, or other professional advice. Please refer to your advisors for specific