Government To Begin Taxing Online Businesses By April 2022

In a frantic effort to achieve an ambitious 80.3 billion Ghana cedis tax revenue target for the year 2022 and also attain a tax to GDP ratio of up to 16.5%, the government has initiated moves to widen the tax net and broaden the tax scope.

Aside from the introduction of an electronic transfers levy which is yet to be considered by Parliament, the government has also initiated moves to collect taxes from businesses operating via the internet.

The Ghana Revenue Authority has revealed plans to begin taxing electronic commerce and online businesses beginning from April 1, 2022.

This will mean that the likes of Netflix, Facebook and other multinational online businesses that accrue revenue from Ghana will be compelled to comply with Ghana’s e-commerce tax.

According to the commissioner of GRA, Rev. Ammishaddai Owusu Amoah, a “special-purpose software has been designed to monitor online businesses and tax them accordingly”.

“Last week, I sat in a presentation of a software, how it works and the demonstration of it and we are confident that by the 1st of April, the taxation of E-commerce will begin” Rev. Owusu Amoah added.

He further noted that the same software shall monitor and tax online gaming and betting activities.

The GRA boss made the announcement at the authority’s 2022 management retreat being held at the Volta Serene Hotel in Ho.

Rev. Amoah further clarified that the e-commerce tax will be targeted at online service providers, both local and foreign.

He expressed confidence that a collaboration with the National Communications Authority will ensure the successful implementation of the new E-commerce tax.

“You know the NCA needs to allow all these multinationals access to be able to do business in Ghana and accrue revenue from here so when the time comes, we will know how to get the multinationals to also comply with our laws,” the GRA boss indicated.

 

 

 

 

 

 

 

 

 

Source: citibusinessnews.com

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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