On 19 April 2020, the President of the Republic of Ghana, Nana Addo Dankwa Akufo-Addo announced the lifting of the restrictions on the free movement of persons under the Imposition of Restrictions Act, 2020, Act 1012 effective 20 April 2020 at 1am. The Ghana Revenue Authority has put in place some measures to ensure that taxpayers are able to fulfil their tax obligations during this period of the Pandemic.

In this alert, we highlight the measures put in place by the GRA to flex the system and support taxpayers fulfil their tax obligations:

Extensions of due dates for filing of returns

• The due date of filing of company self-assessment returns which was originally due on 31 March 2020 has been extended to 30 April 2020.
• The due date for filing Company Income Tax (CIT) returns has been extended from four to six months after the end of the financial year. Thus, CIT returns that were due on 30 April 2020 have been extended to 30 June 2020.

Filing of Monthly returns

• Taxpayers are expected to file their monthly tax returns by the due dates as usual. The returns are to be filed using the email address of the taxpayers’ tax offices.
• All taxpayers are to contact their various offices for the email address.

Payment of taxes

• Payment of taxes are to be done by swift/direct transfer. Taxpayers are to contact their various tax offices for the bank details of the tax office.

Waivers

• Interest of outstanding tax liabilities have been waived by the GRA on the condition that the principal interest is paid by 30 June 2020.

Contributions and Donations to COVID-19

• Donations and contributions toward the fight against the COVID-19 Pandemic shall be allowed by the GRA as a deductible expense for the year 2020.

Vehicle Income Tax (VIT)

• The due date for sale of VIT stickers has been extended to 15 May 2020.

Takeaway

• It is important that taxpayers continue to meet their tax compliance obligations where no concession has been granted.
• It is important for taxpayers to note that none of the monthly tax obligations has been extended.
• Companies seeking to obtain Withholding tax exemption Certificate from the GRA are encouraged to file their returns as this may be used as a reason to deny granting the application.
• Taxpayers with cash flow constraint may apply to the GRA for an extension of time to pay the tax at an agreed later date. This application should be backed by economic proof in order to obtain the extension.