To register your company with the GRA, the following documents are required; Completed corporate tax registration forms, Pictorial delineation of the project/office location. There are already hundreds of NGOs in Ghana with hundreds more being started every year. NGOs by definition are “non-profit- making organizations”. Value of Taxable Supplies     =    Ghc 12,000, NHIL   =  Ghc 12,000 * 2.5% =   Ghc   300, Subtotal                               Ghc   12,600.00, VAT = Ghc 12,600 * 12.5%   =   Ghc 1,575.00, Total Amount  to be paid to GRA = NHIL + GETFL + VAT. Legislation should be passed to make it mandatory for all NGOs operating in country to register with this regulatory body. Because most NGOs receive funds in the good name of the HIPC Ghanaian people. Annual income tax rates (Effective January 2020) –, Monthly income tax rates (Effective January 2020) –. Of course not much can be done because most of these 'profit making' NGOs have very strong political connections in government. This is good. The Defects of the NGOs The benefits that communities are deriving from NGOs cannot be said to be a general phenomenon regarding all NGOs operating in the country. Reliefs in the fifth Schedule have been revised as follows: The following tax incentives (tax holidays and tax rebates) are available under the law; All companies are required to file their monthly and annual tax returns. In this article, we have detailed everything you need to know about tax registration, tax rates, tax incentives, withholding taxes, income taxes, monthly tax filings, and audits in Ghana. Any additional day is Gh₵ 10. Auditing of NGOs accounts should be a must. And thanks to some NGOs a lot of women are now 'enlightened'about their rights. Is Severance Pay Taxable in Ghana? Tax Calculator: If you are a contractor and want a calculation on your tax and net retention in Ghana, we can supply it … The tax rate is 25%. These 21st century prophets (tress), pastors usually start their profession by 'preaching' in buses and other public places. A regulatory body and transparency in the activities of NGOs might help get these 'businessmen' and 'women' out of work for good. For new business tax registration, provisional tax assessment is determined by the GRA office in consideration of the objects of the business, stated capital and the nationality of the shareholders. So just imagine for once that a rich man or woman siting somewhere in London contributing money to Plan International to enable it construct classrooms in Ghana, and then Plan Ghana uses the funds for something different. Some NGOs have lost focus on their main objectives and the original idea of the traditional Ghanaian “nnoboa”system, been the desire to help. In an audit, the company will be required to supply relevant company source documents including the following; Copies of payment receipts for general and operational expenses, Custom import documents as evidence for importation. This means that a person earning anything below 3132 does not pay income tax to the government of Ghana. But the truth is that these are funds either given by donors or the Ghana Aids Commission with no interest whatsoever. Why would a new graduate refuse posting to a government department or the class room but instead aims to either seek employment from these countless charitable organizations, or worst still they make fervent attempts to form an NGO of their own. Sometimes, NGOs import various items such as machines, clothing … 4 hours ago, UK in crisis over virus travel bans as US nears stimulus dea, NDC protest nearly crash with security personnel, [Full Text] President Akufo-Addo’s 20th Update On Coronaviru, Two policemen, two others grabbed for selling guns, Ghana will not be left behind in accessing COVID-19 vaccine, Fire destroys 12 fabric shops at Kaneshie, Adhere to COVID-19 safety protocols during Christmas festivi, Be Decorous When Discussing About Our Presidential Candidate, What Has "Otani Gyimifoc" Have To Do With Agyapa Royalties L, Jean Mensa Forgot; She Could Have Aborted The 2 Kids. Rather they recognise NGOs as basically no-for-profit entities, which are therefore exempted from paying Income Tax. For instance, each individual is given about 300,000 cedis and the weekly or monthly payment eventually comes to 400,000 cedis. Do you need help with your GIPC registration? Taxes in Ghana at a glance, but obsolete. These are NGOs, which are directly or indirectly linked to some political parties in the country. During an audit, the tax officers typically assesses whether the source documents agree with the audited financial statement that has been submitted to the GRA. Income tax in Ghana can range from 0 to 25 percent, and you need to be sure you are placed in the correct tax brackets. Business Registration with Regulatory Authorities, Employee Satisfaction & Engagement Surveys. Who is eligible for tax payment? Contact center. Corporate Tax: This is the tax paid by companies on their profits in the year. Some NGOs focus on making (capital) money out of the Ghanaian poor. and Retail Survey! Tax withheld must be filed and payment made by the 15th of the month following the month in which the tax … One who earns profit and NGO is Non Profit Organisation, so not eligible for tax payment. What You Need to Know about Company Registration, How to Replace a GIPC Automatic Quota in Ghana, Comment obtenir une licence de zones franches au Ghana, Companies Engaged in Non-Traditional Exports, (i) Dividend, including capitalisation of profits, (ii)Dividend paid to persons from petroleum operations, (iii) Dividend paid to persons from mineral operations, (vi) Rent on properties (Payment to an   individual), (vii) Rent on properties (Payment to an individual), (viii) Rent on properties (Payment to persons other than an individual), (x) Payments made to a person who conducts a relevant transport business other than as a result of transshipment, (xi) Payments made to a person who conducts a relevant transport business other than as a result of transshipment, (xii) Payments for unprocessed precious minerals located or won in Ghana, (xiii) Payments due to persons who conduct business of transmitting or receiving messages by cable, radio, optical fiber or satellite or electronic communication, (xiv) Commission paid to an individual as a sales agent, xv) Service fees paid to an individual for examining, invigilating or supervising an examination, or part time teaching or lecturing, (xvi) Fees or allowances, to a resident director, manager trustee or board member of a company or trust, (xvii) Commission paid to an individual as a resident insurance, sales or canvassing agent, (xviii) Endorsement fees to an individual, (xix) Any other service provided by an individual, xx) Commission to an individual as a resident lotto receiver or agent, xxi) Contract payments for the supply or use of goods, (xxii) Contract payments for the supply of works, (xxiii) Contract payments for the supply of services, (xxiv) Contract payments made to a Withholding VAT agent in respect of taxable output value of standard rated supplies, (iii) Royalties and Natural Resource Payment, (v) Management and technical service fees, (vi) Contract payments for the supply of any services, vii) An insurance premium with a source in Ghana, (ix) Goods, Works and Service fee which give rise to income with a source in Ghana, Payments for unprocessed precious minerals located or won in Ghana, Payments received by a person who conducts a relevant transport business other than as a result of transshipment, (xiii) Rental of containers and related equipment which are supplementary or incidental to the relevant transport business above, Payments received by a person who conducts a business of transmitting or receiving messages by cable, radio, optical fiber or satellite or electronic communication, Earned repatriated profits by a non-resident who carries on business in Ghana through a permanent establishment. The monthly PAYE is deducted at source by your employer using the monthly graduated individual tax … Such an NGO is situated in the executive director's home and with a cousin or brother as an administrative assistant. Equally important is the duplication of work as seen in the activities of some NGOs. Everyday a new church emerges under a tree, lorry pack, school buildings, community halls, hospitals among others. We are happy to assist. Many have argued that NGOs are not to pay any form of taxes at all since they ar. It is mandatory for all shipments to Ghana to have a cargo tracking note number, without which cargo cannot be cleared at destination. A Guide to Tax Work for NGOs is intended to help demystify … This is because most activists and newbies who start their organizations do so without first testing the waters. The Roles Played by NGOs in Ghana The roles played by NGOs in Ghana cannot be over emphasized. These 'political' NGOs are either directly or indirectly linked to some political parties in Ghana. Talk to us first. Secondly, there must be greater transparency in the activities of NGOs. If you do not live in Ghana but earn an income in Ghana, you will have to pay the taxes in Ghana. It is impossible to say how many NGOs are operating in the country because the literature on NGOs in Ghana is woefully inadequate. Annual income up to GH₵ 3,456 is taxed at 0%. The annual turnover figure must                correspond with the company’s sales book and bank statement sales deposits. Notify me of follow-up comments by email. (+233)540761009 The programmes of NGOs should be streamline, monitored and evaluated by the government regulatory body. Import duty. Any additional day is Gh₵10. Chargeable assets do not include trading stock, securities of a company listed on the Generally, income has a source in Ghana if it accrues in or is derived from Ghana… I am working for NGO, I am currently earning 8000, do I have to pay tax? The author has 3 publications published on Modern Ghana.Column: GeorgeBobMilliar, Disclaimer: "The views/contents expressed in this article are the sole responsibility of the author(s) and do not necessarily reflect those of Modern Ghana. Tax Calculator Compute your net income, PAYE income tax and SSNIT deduction * Allowances are also taxed. Companies operating in Ghana are liable to pay varied levels of taxes depending on the sector of operation, and the location of the project and whether the company is listed on the Ghana Stock Exchange. There are a lot places where they can practice the policy of full cost recovery and not on the NGOs. NGOs are playing a very vital role in the Ghanaian economy and they must be encouraged. FEATURED: Live Updates: Ghanaians Go To The Polls... Introduction The two fastest growing 'businesses' in the Ghanaian economy currently are the Non- Government Organizations (NGOs) and the 'Neo-Charismatic' Churches. Just like it predecessor (DWM), the commissioning of markets, clinics, schools, toilets (KVIPs) and gari processing plants are proceeding smoothly. How PAYE works. Where a non-resident person has a Ghanaian permanent establishment (PE), any income connected with the PE is assessed to tax. The tax withheld must be filed and payment made by the 15th of the month following the month in which the tax is withheld. In Ghana … Thanks. Some NGOs in Ghana generally work through volunteers and they are funded through … Disclaimer: We do our best to ensure the accuracy of this tool but we cannot be held responsible for any errors. Any income in excess of GH₵ 240,000 is taxed at 30%. The answer definitely lies in the 'profit making' or the 'good' salaries these NGOs pay their staff. We deliver in 3 – 5 working days. For the first GHS 0-3132 per year, the tax exposed to it is 0%. It is the employer’s responsibility to file monthly tax returns on behalf of its employees. All acquisitions of new assets must be evidenced by appropriate receipts and the asset register, and shown in the balance sheet as well. But the danger with these political NGOs is that their development programmes are not sustainable. And in the advanced economies they are called Charities. How to Wind-Up, Liquidate or Dissolve a Company in Ghana. (+233)576461118. Penalty for late filing of tax returns are: VAT – After the last working day you will pay Ghc500. With the typical 'profit making' NGO in Ghana, the founder of such an NGO is the executive director and president as well. Withholding tax rates Ghana 2020. Many NGOs are undertaking a number of activities in Agriculture, Health, Education, Science and Technology, Research and most importantly 'women development'. The fresh Ghanaian graduate of today needs a re-orientation of the mindset. Withholding tax in Ghana 2020 features some noticeable changes both in resident and non- resident persons. This means you would pay an overall tax of GHS 410.20 on an income of GHS 2,500 (25% on the whole GHS 2,500 would be GHS 625, so the … NGOs of such nature usually come out of the darkness to submit proposals to the donor community for sponsorship. For new business tax registration, provisional tax assessment is determined by the GRA office in consideration of the objects of the business, stated capital and the nationality of the shareholders. The GRA may from time to time initiate a company audit. WELL NOTED. We are happy to assist. The profit making NGOs in Ghana are a lot. Income liable to tax In Ghana, income tax is levied each year on the income of both resident and non-resident persons. They offer their assistance to party supporters so that when the Election Day comes they will be assured of their votes. Do you have an enquiry on Food Products Registration in Ghana? The NGO might have made 100 per cent profit from these innocent poor women who need credits to make their living conditions better. which type of tax rate is appropriate for manufacturing, retailing and wholeselling companies in ghana, keep updating us on current tax issues pending in the country. Programmes should be effectively implemented and good accounts rendered to the sponsoring organization. Et tempor, facilisis cursus turpis tempor odio. In some deprived rural areas, the only important and very common names known to the dwellers is either 31ST DWM, World Vision, Action Aid, Catholic Relief Services (CRS), Adventist Development and Relief Agency, USAID, among others because, it was the NGO that provided them with clean drinking water, the clinic in the village center, the afforestation project, credit facilities, school building, extension services and many more. Complying with the tax laws stated, would help a business to thrive in the Ghanaian business environment and avoid future troubles. Are there any tax credit for Solar and are there any tax holidays for investments of over 30 million dollars, Kindly update the monthly and annual income tax rates and the VAT and NHIL as well. Ghana personal tax rates are graduated with rates ranging from 0% to 30%. This aspect of the 'profit making' is well known but little is been done to curb it. Resident persons are taxed on their worldwide income, while non-resident persons are taxed on income which has a source in Ghana. We will contact you as soon as possible. Do you have an enquiry on how to obtain a Free Zone License in Ghana? Box YK 1356, Kanda, Accra. Again there should be an annual auditing of the accounts of all NGOs operating in Ghana. Annual financial statements – After last working day of April you will pay Gh₵500. The answer definitely lies in the 'profit making' or the 'good' salaries these NGOs pay their staff. She M, Reminiscences of Great Komenco (Komenda Teacher Training Col, Mahama’s Biggest Downfall In This Election is Sammy Gyamfi A, Why I am confident in the EC certified results and the victo, The NPP's Political Tsunami in Ghana's Elections 2020. It's therefore appropriate for NGOs to submit their accounts to the Auditor General office for proper auditing. need to be addressed, the last four tax budgets have overall been encouraging for the business community. Effective 01 July 2007, the currency of Ghana- the Cedi- was re-denominated to Ghana Cedi (GH¢) by the Bank of Ghana. This wicked collaboration between the ministries and some of the NGOs should cease in order for the poor to derive the maximum benefits from projects implemented. The worse offenders of this group of 'profit making' NGOs are those who are into micro-credit programmes. A person earning anything below 3132 does not pay income tax responsibilities that you have an on. Annual audited financial statement – not late than 31 of course not much can be done because most NGOs funds. Personal income tax rates ( Effective January 2020 ) –, monthly income tax rates ( January... 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