Income Tax (Amendment) Act, 2015 (Act 902)

Section 1—First Schedule to Act 896 amended The Income Tax Act, 2015 (Act 896), referred to in this Act as the principal enactment, is amended in the First Schedule (a) by the substitution for subparagraph (1) of paragraph 1 of “(1) Subject to subparagraph (3) and the Second Schedule, the chargeable income of a resident individual for a year of assessment is taxed at the following rates: NO. CHARGEABLE INCOME RATE OF TAX l. First GH¢2, 592 Nil 2. Next GH¢1, 296 5 percent 3. Next GH¢1, 812 10 percent 4. Next GH¢33, 180 17.5 percent 5. Exceeding GH¢38, 880 25 percent.” (b) by the substitution for subparagraph (6) of paragraph 3 of "(6) The chargeable income of a company for a year of assessment from a manufacturing business not included in subparagraphs (1) and (3), other than a manufacturing business located in Accra or Tema, is taxed at the rates indicated below: Location Rate of Income Tax (a) Manufacturing business located in the regional capitals of the country (b) Manufacturing business located elsewhere in the country 75 percent of the rate of income tax applicable to other income under sub-paragraph (1) 50 percent of the rate of income tax applicable to other income under sub-paragraph (1)”. (c) by the insertion after paragraph 8 (1) (c) (ii) of “(iiA) in the case of service fees referred to in section 116 (1) (a) (vii), fifteen percent;”.

Section 2—Second Schedule to Act 896 amended The principal enactment is amended in the Second Schedule (a) by the substitution for paragraph 5 of 5. “Presumptive tax based on turnover Where presumptive taxation applies to an individual as referred to in paragraph 2 (1) (c) (ii), the tax payable by that individual for a year of assessment under section 1 (1) (a) is three percent of the turnover of the business, where the turnover is more than twenty thousand cedis but does not exceed two hundred thousand cedis.”; and (b) by the substitution for paragraph 6 (1) (b) of “(b) the turnover of that individual does not exceed two hundred thousand cedis, calculated using the modified cash basis.”. Date of Gazette Notification: 30th December, 2015.