The directive exempted specified individuals and institutions (“exempt persons”) such as:

• Members of the Executive, Legislature and the Judiciary;
• Production, distribution and marketing of food, beverages, pharmaceuticals, medicine, paper and plastic packages;
• Environmental and sanitation activities;
• Staff of VALCO;
• Road and railway construction workers;
• Mining workers;
• Fishfolks;
• Members of the security agencies assigned lawful duties;
• Media;
• Staff of electricity, water, telecommunications, e-commerce and digital service providers; and
• Staff of fuel stations.

In this alert, we highlight the comprehensive measures adopted by the Government in the wake of the COVID-19 pandemic below:

Economic Measures

Corona virus Alleviation Programme with a seed money of GHS1,000,000,000 to mitigate the impact of the Corona virus on businesses and households.

A syndication facility of GHS 3 billion to support specified industries such as pharmaceutical, hospitality, services and manufacturing sectors.
Six months’ moratorium of principal repayments for selected businesses.Reduction of interest rate priced-off the Ghana Reference Rate (GRR) by 200 basis points (2%)

Tax Measures

Extension of time for filing of annual corporate returns to 30 June 2020 (originally due on 30 April 2020).
Taxpayers advised to pay their taxes by bank transfers to the relevant tax office.
Taxpayers are required to submit tax returns due to their respective Tax Offices using the email addresses provided by that office.
A remission of penalties on principal debts to taxpayers who settle their outstanding debts due to the GRA up to 30 June 2020.
Taxes on selected Third-Tier Pensions withdrawals will be waived.
Donations and contributions towards COVID-19 will be allowed for tax deduction.
No VAT on donations of stocks of equipment and goods for fighting the COVID-19 pandemic.

Banking and Financial Measures

Monetary Policy Rate has been reduced by 150 basis point to 14.5%.
The Primary Reserve Requirement has been reduced from 10% to 8% to allow the banks to have liquidity to support critical sectors of the economy.
The Capital Conservation Buffer (CCB) for banks has been reduced from 3% to 1.5%.
Provisioning for Loans in the “Other Loans Especially Mentioned” (OLEM) category has been reduced from 10% to 5% for all banks and Specialised Deposit-Taking Institutions (SDIs).
Loans repayments that are past due for Microfinance Institutions for up to 30 days will be considered as “Current”.
No transfer charges on amount of up to GHS 100 sent or received via Mobile Money regardless of the network.
Ghana Interbank Payment and Settlement Systems Ltd (GhIPSS) waives fees on electronic payments services used by all banks, Fintechs and mobile money operators.

Regulatory and Company law Compliance Measures

Filing of annual returns at the Companies Registry has been extended to 30 June 2020 for companies with financial year ending 31 December 2019.
Companies with financial year ending June 2020 have up to 31 December 2020 to file their annual returns with the Companies Registry.

Takeaway

→ It is important that taxpayers continue to meet their tax compliance obligations where no concession has been granted.

→ The GRA has set out additional information about its contact details, bank details and emails for submission of returns and payment of taxes during the lock-down.

If you have any questions on the matters referred to in this Alert, please do not hesitate to contact the authors below.

The information provided in this alert, is not intended to be, and shall not be construed to be, either the provision of legal or tax advice or an offer to provide legal or tax services, nor does it necessarily reflect the opinions of the firm, our lawyers/consultants or our clients. No client lawyer/consultants relationship between you and our lawyers/consultants is or may be created by your use of this information. Rather, the content is intended as a general overview of the subject matter covered. WTS Nobisfields is not obligated to provide updates on the information presented herein. Those reading this alert are encouraged to seek direct counsel on this issue.