On 13 November 2019, Finance Minister, Mr. Ken Ofori-Atta, has presented the New Patriotic Party (NPP) government’s fourth Budget Statement and Economic Policy to Parliament which he said is focused on providing liquidity to boost industrialization in the country; emphasizing the type of liquidity that is required to support industrialization as a key element in the 2020 Budget.
Mr. Ken Ofori Atta also revealed that the 2020 budget would review the country’s tax exemption policy and said a lot of resources are lost in exemptions and it is therefore time to straighten it out and make the exemptions count.
Individual Income Tax
The Government is proposing to revise the individual income tax in the year 2020 to align the tax-free income tax threshold to the new minimum wage. This follows the proposed 12% increment of the minimum wage for public sector workers and minimum wage earners will be exempt from tax liability.
E-services legislation
The Government is reviewing the current laws on the taxation of e-services to strengthen the existing laws. Consequently, the Government will issue new regulations and administrative guidelines for the taxation of e-services.
Transfer Pricing and Revenue Administration Regulation
The Government intends to enact the following Regulations in 2020:
- Updated Transfer Pricing Regulations; and
- Revenue Administration Regulations.
