The notice mentions that a 25% tax applies to gains, with residents able to choose between the flat rate or regular income tax rates, while non-residents pay a final 25% tax on the gross proceeds.
The Ghana Revenue Authority (GRA) has issued a public notice reminding taxpayers of their duty to comply with the tax requirements on gains arising from the realisation of assets and liabilities.
Implementation of tax on gains on realisation of assets and liabilities
The Ghana Revenue Authority wishes to remind the general public, especially taxpayers that under Section 39A of the Income Tax (Amendment) Act, 2023 Act 1094, a person who realises an asset or liability shall within thirty days after the realisation of the asset or liability, submit a return to the Commissioner-General for the determination of Tax on Gains on Realisation of Assets and Liabilities.
Tax on gains on realisation of assets and liabilities is the tax paid when a person makes a profit from realisation of an asset.
These include:
- Land and buildings (other than your primary residence)
- Shares or securities
- Business assets such as goodwill
- Other investment assets
The standard rate of the tax is 25% of the gain. However, individuals have the option of paying a flat rate of 25% on the gain or choose to add that profit to their total income for the year and have it taxed at the normal (graduated) income tax rate. Non-residents who realise investment assets are also required to pay a final tax of 25% on the gross consideration.
Additionally, persons paying for the acquisition of any investment or capital assets are required to withhold tax at a rate of 10% in the case of non-residents and 3% in the case of residents.
