Chamber of Commerce France Updates Members On Tax System

The Chamber of Commerce and Industry France Ghana (CCIFG), in collaboration with KPMG, has organised a tax system business breakfast aimed at updating members of the Chamber on the country's tax reforms in Accra.

The event, attended by over 70 members, was facilitated by a team from KPMG, a firm of chartered accountants.

Participants were also updated in the personal income tax rate which has been increased from 25 per cent to 35 per cent on persons earning income above GH?10, 000 monthly or GH?120, 000 per annum.

Kofi Frempong-Kore, Tax Unit, KPMG, Gordon Dardey, Deputy Manager and Michael Kofi Boateng, manager, all from KPMG, enlightened participants on the principle of modified taxation as well as changes in the withholding tax laws and its impacts.

Mr Dardey, in his presentation, discussed taxation of business and investment income highlighting on current tax provisions on capital allowance under operating and finance lease, accelerated capital allowance benefits for taxpayers under excise duty, carryover of losses and repairs and improvement of depreciable assets, among others. Tax exemption on interests was also addressed.

Mr Michael Boateng who spoke about the concept of transfer pricing, highlighted the key areas for compliance.

In his presentation, he explained the need to take transfer pricing documentation seriously, as Ghana Revenue Authority (GRA), in recent times, had increased its drive towards transfer pricing audits, resulting in huge tax liabilities for non-compliance.

He referred to a 2016 report from the Tax Justice Network that estimated an annual approximate loss of US$2 billion to Africa due to abuses of transfer pricing principles.

"The tax authorities conscious of this, will not relent on their efforts to rake in some revenues in this space," he said.

Mr Boateng further explained issues around technology transfer agreements, and the need for their registration with the Ghana Investment Promotion Centre (GIPC)

Mr Frempong-Kore, for his part, presented results from a KPMG survey conducted on businesses on the impacts of changes in tax legislation on their businesses.

He also touched on the new VAT regime and explained to taxpayers what they need to take into consideration in complying with the new updates.

The breakfast meeting was the second event organised by CCIFG with KPMG this year to help both its members and non-members become abreast of the changes in Ghana's tax system.

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