Income Tax (Amendment) Act, 2016 (Act 907)
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”.
- “(p) interest paid to an individual
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;”;
- “(viii) in the case of lottery winning:
- (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.