Income Tax (Amendment) Act, 2019 (Act 1007)
ARRANGEMENT OF SECTIONS
- 1. First Schedule to Act 896 amended
- 2. Fifth Schedule to Act 896 amended
- 3. Sixth Schedule to Act 896 amended
LONG TITLE
AN ACT to amend the Income Tax Act, 2015 (Act 896) to revise the rates of tax for the chargeable income for a resident individual for a year of assessment, provide for a tax holiday for automobile manufacturers and assemblers and for related matters.
DATE OF ASSENT
28th December, 2019.
ACT
1. First Schedule to Act 896 amended
The Income Tax Act, 2015 (Act 896) referred to in this Act as the "principal enactment" is amended in the First Schedule by the substitution for the table in subparagraph (1) of paragraph 1, of
| "NO. | CHARGEABLE INCOME RATE OF TAX | RATE OF TAX |
|---|---|---|
| 1. | First GH¢3,828 | Nil |
| 2. | Next GH¢1,200 | 5 per cent |
| 3. | Next GH¢1,440 | 10 per cent |
| 4. | Next GH¢36,000 | 17.5 per cent |
| 5. | Next GH¢197,532 | 25 per cent |
| 6. | Exceeding GH¢240,000 | 30 per cent" |
2. Fifth Schedule to Act 896 Amended
The principal enactment is amended in the Fifth Schedule by substitution for
- (a) "two hundred currency points" in subparagraph (a) of paragraph 1 of "one thousand two hundred currency points";
- (b) "two hundred currency points" in subparagraph (c) of paragraph 1 of "one thousand five hundred currency points";
- (c) "two hundred currency points" in subparagraph (d) of paragraph 1 of "six hundred currency points";
- (d) "one hundred currency points" in subparagraph (e) of paragraph 1 of "one thousand currency points"; and
- (e) "four hundred currency points" in subparagraph (f) of paragraph 1 of "two thousand currency points.".
3. Sixth Schedule to Act 896 amended
The principal enactment is amended in the Sixth Schedule by the insertion after paragraph 11 of
- "12. Registered manufacturers and assemblers of automobiles under the Ghana Automotive Manufacturing Development Programme
- (1) The income of a manufacturer or assembler in respect of the manufacture or assembling of
- (a) semi-knocked down vehicles is exempt from tax for a period of three years from the date of commencement of the manufacturing or assembling business; and
- (b) complete-knocked down vehicles is exempt from tax for a period of ten years from the date of commencement of the manufacturing or assembling business.
- (2) The concessions provided for in subparagraph (1) are cumulative.
- (3) A manufacturer or assembler who starts with semi-knocked down vehicles and converts to complete-knocked down vehicles is not entitled to a concessionary period greater than an aggregate of ten years.".