• Live Radio
  • Videos
  • About
  • Contact
  • Despite Media
Ghana Election 2020
  • Home
  • Local News
  • Politics
  • Showbiz
  • Sports
  • Business
  • Opinion
  • VIDEOS
  • Media
    • Videos
    • Audio
    • Live Radio
    • Photos
  • Election 2020
Local News
 
 
 
Home Business Business News 201601

Gov�t Taxes �Cheap� Loans

07-Jan-2016
/ Business News, Business
Email
Print
Comments 0
(0)
Comments
Share on Facebook Share on Twitter
 

Government, in its insatiable quest for more revenue, has imposed taxes on ‘cheap’ loans that employers provide to their employees.

It would not tax loans less than the employee’s three (3) months basic salary for a period not exceeding 12 calendar months.

Per the new tax law, interest income earned from individual savings at a local bank or from the purchase of Government of Ghana bonds (T-bills) are also taxable now.

These were previously tax-free income.

Even though the special gift tax regime has been abolished, all gifts valued at more than GH¢50 must now be added to recipients’ assessable income for tax purposes.

After all the hue and cry for the country’s tax net to be expanded, the government has decided to rake in more revenue to increase the tax burden on taxpayers rather than rope in more individuals and enterprises that hitherto have evaded taxes.

Out of a number of 55 service areas taxed, only one has been reversed leaving the remaining 54 still in force.

Although the law is technically in effect from the date of assent – 1st September, last year, a transitional provision rendered it effective 1st January 2016.

The pay-as-you-earn (PAYE) rate bands have not changed yet. However, the 2016 budget proposes to increase the minimum tax free income from GH¢1,584 to GH¢2,592.

Furthermore, Capital Gains tax has been effectively increased by 5 percentage points to 15 percentage while the absolute limits for quantification of car benefits have also increased to GH¢600 per month, GH¢500 per month and GH¢250 per month for driver and vehicle and fuel, vehicle with fuel or vehicle only/fuel only respectively.

However, mortgage interest deductibility has been limited to only one building per individual in a lifetime.

Corporate taxes

The withholding tax (WHT) rate bands and threshold have change with the new threshold being GH¢2,000.

The new rates are works – 5 percent and services – 15 percent.

Also, capital gains is now being taxed at the standard corporate tax rate of 25 percent up from the special 15 percent regime, which has now been discontinued.

In the case of the thin-capitalization threshold, it has also been increased from 2:1 to 3:1 (debt: equity) while the VAT threshold for registration has not changed even though the 2016 budget is proposing to increase it to GH¢200,000.

Source: Daily Guide

 

 
 

 

Comments ( 0 ): Post Your Comments >>

Disclaimer: Opinions expressed here are those of the writers and do not reflect those of Peacefmonline.com. Peacefmonline.com accepts no responsibility legal or otherwise for their accuracy of content. Please report any inappropriate content to us, and we will evaluate it as a matter of priority.
Featured Video
Previous Post

Reopen Microfinance Companies Shut Down By Bog Or Else ...

Next Post

Transport Unions Meet Government Today Over New Fares

 
 

More Stories

Growing Ghana’s Oil Reserve
AbsaBank Signals Bold Commitment To Africa With New Purpose
Convenient Payment Methods for Ghanaian Online Casino Enthusiasts
West Africa's Biggest Shopping Centre, $250 million Ghana International Mall Almost Complete (VIDEO)
Prudential Life- Celebrating 9 Years of Helping People Get The Most Out of Life
WAMI Partners EMTECH SOLUTIONS To Modernize Fintech Regulatory Frameworks Across WAMZ
Bayport MD, Akwasi Aboagye Wins Top Award At Seventh Ghana CEO Summit & Expo
Mastercard Partners Ghana Cyber Security Authority To Fight Fraud
Ghana Remains Competitive But Losing Ground To Senegal And Ivory-Coast
Next Post

Transport Unions Meet Government Today Over New Fares

  Ghana Business News

  • General News
  • Economy
  • Banking & Finance
  • Stock Market
  • Industry/Manufacturing


 
 

Other Business News Stories

  • Growing Ghana’s Oil Reserve

  • AbsaBank Signals Bold Commitment To Africa With New Purpose

  • Convenient Payment Methods for Ghanaian Online Casino Enthusiasts

  • West Africa's Biggest Shopping Centre, $250 million Ghana International Mall Almost Complete (VIDEO)

  • Prudential Life- Celebrating 9 Years of Helping People Get The Most Out of Life

  • WAMI Partners EMTECH SOLUTIONS To Modernize Fintech Regulatory Frameworks Across WAMZ

  • Bayport MD, Akwasi Aboagye Wins Top Award At Seventh Ghana CEO Summit & Expo

  • Mastercard Partners Ghana Cyber Security Authority To Fight Fraud

  • Ghana Remains Competitive But Losing Ground To Senegal And Ivory-Coast

  • Standard Chartered Outdoors 20 Female Owned Businesses In SC Women In Technology Incubator, Cohort 3

 

 
 

Popular Videos

Kokrokoo Discussion Segment On Peace 104.3 FM (30/05/2023)

Kokrokoo Discussion Segment On Peace 104.3 FM (31/05/2023)

Kokrokoo Live On Peace 104.3 FM (30/05/2023)

Akan News @ 6pm On Peace 104.3 FM (1/06/2023)

DAWURO 30/05/23

GHANA MONTIE WITH MAC JERRY OSEI AGYEMAN on NEAT 100.9 FM (WEDNESDAY 31-05-23)

Peace FM Online and Despite Media

peacefmonline.com offers its reading audience with a comprehensive online source for up-to-the-minute news about politics, business, entertainment and other issues in Ghana

Follow us on social media:

Category

  • Home
  • Local News
  • Politics
  • Showbiz
  • Sports
  • Business
  • Opinion
  • Trivia
  • Foreign
  • Audio
  • Photos
  • Videos
  • Elections
Decision Time
Ghana Election 2020 2016 Elections
Services
Live Radio Audio on Demand Ghana Elections Advertise with Us
Useful Links
Despite Media About Us Contact Us Feedback Form Terms and Conditions Privacy
Our Brands
Despite Media UTV Peace FM Okay FM Hello FM Neat FM Peacefmonline
  • About
  • Advertise
  • Terms & Conditions
  • Contact
  • Privacy

© 2020 Peacefmonline.com - An online portal owned and managed by Despite Media

  • Home
  • Local News
  • Politics
  • Showbiz
  • Sports
  • Business
  • Articles
  • Trivia
  • Foreign
  • Live Radio
  • Photos
  • Videos
  • Audio
  • Election 2020

© 2020 Peacefmonline.com - An online portal owned and managed by Despite Media