Oblitey: Created page with "==ARRANGEMENT OF SECTIONS== :1. Section 7 of Act 896 amended :2. First Schedule to Act 896 amended :3. Sixth Schedule to Act 896 amended ==PURPOSE== AN ACT to amend the Income Tax Act, 2015 (Act 896) to provide for the exemption from tax of interest paid to an individual by a resident financial institution or to an individual on bonds issued by the Government of Ghana; to provide for a reduction in withholding tax on service fees paid to a resident person and to provide..."

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Created page with "==ARRANGEMENT OF SECTIONS== :1. Section 7 of Act 896 amended :2. First Schedule to Act 896 amended :3. Sixth Schedule to Act 896 amended ==PURPOSE== AN ACT to amend the Income Tax Act, 2015 (Act 896) to provide for the exemption from tax of interest paid to an individual by a resident financial institution or to an individual on bonds issued by the Government of Ghana; to provide for a reduction in withholding tax on service fees paid to a resident person and to provide..."

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==ARRANGEMENT OF SECTIONS==
:1. Section 7 of Act 896 amended
:2. First Schedule to Act 896 amended
:3. Sixth Schedule to Act 896 amended

==PURPOSE==
AN ACT to amend the Income Tax Act, 2015 (Act 896) to provide for the exemption from tax of interest paid to an individual by a resident financial institution or to an individual on bonds issued by the Government of Ghana; to provide for a reduction in withholding tax on service fees paid to a resident person and to provide for related matters.

==DATE OF ASSENT==
18th February, 2016.

==ACT==

====1. Section 7 of Act 896 amended====
The Income Tax Act, 2015 (Act 896) referred to in this Act as the “principal enactment” is amended in subsection (1) of section 7
:(a) by the deletion of “and” after paragraph (n);
:(b) by the deletion of “.” and the insertion of “; and” after paragraph (o); and
:(c) by the insertion of new paragraphs (p) and (q) as follows:
::“(p) interest paid to an individual
:::(i) by a resident financial institution; or
:::(ii) on bonds issued by the Government of Ghana; and
::(q) the interest or dividend paid or credited to a holder or member on an investment in an approved unit trust scheme or mutual fund is exempt”.

====2. First Schedule to Act 896 amended====
The principal enactment is amended in the First Schedule by the substitution for
:(a) paragraph 8(1) (b) (viii) of
::“(viii) in the case of lottery winning:
:::(i) First 2,592 — Nil
:::(ii) Exceeding 2,592 — 5 percent;”;

:(b) paragraph (8)(1)(c)(vii) of
::“(vii) in the case of service fees referred to in section 116(2) (c), 7.5 percent;”; and

:(c) paragraph (8)(3) of
::“(3) The rate of tax to be withheld from a payment under section 85(2) is three percent of the amount.”.

====3. Sixth Schedule to Act 896 amended====
The principal enactment is amended in the Sixth Schedule by the deletion of subparagraph (3) of paragraph 6.

Income Tax (Amendment) Act, 2016 (Act 907) - Revision history