On 1 May 2020, the Parliament of Ghana passed the Income Tax (Amendment) Bill 2020 to introduce several emergency tax measures in response to Covid-19 pandemic. The approved income tax measures are as follows:

  • An individual who makes withdrawals from their Tier three Provident Funds or personal pension schemes before maturity as a result of permanent loss of employment or capital due to the COVID-19 pandemic shall be exempted from the income tax thereon.
  • The salary of health workers for the months of April to June 2020 is exempt from income tax.
  • Donations and contributions made toward fighting the COVID-19 pandemic shall be allowed as deductible expense.
  • The deadline for filing annual income tax returns has been extended to 30 June 2020 from 30 April 2020 for individuals, partnerships and annual P.A.Y.E. Deductions Return filed by employers.
  • The Registrar-General’s Department has extended the deadline for filing annual company returns. Companies with year-ends up to 31 December 2019 will have until 30 June 2020 to file their returns. Companies with 2020 year-ends up to 30 June 2020 should submit their returns by 31 December 2020.
  • Penalties on principal debts will be cancelled upon payment of outstanding debts due to the GRA up to 30 June 2020.
  • The GRA has disseminated information to aid the payment of taxes by bank transfer and the filing of returns by email.
  • Donations of goods for fighting COVID-19 pandemic will be VAT exempt.