Ghana: Tax provisions in 2021 budget

Ghana: Tax provisions in 2021 budget

The budget for 2021, presented in March 2021, is focused on activities targeting economic recovery as a response to the coronavirus (COVID-19) pandemic.

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Among the revenue provisions in the 2021 budget are the following tax items:

  • A financial sector clean-up levy to be imposed on banks, at a rate of 5% of profit before tax
  • A COVID-19 health levy composed of a one percentage point increase in the national health insurance levy (increased to 3.5% from 2.5%) and a one percentage point increase in the flat rate of value added tax (VAT) (increased to 4% from 3%)
  • A sanitation and pollution levy and an energy sector recovery levy
  • A proposed measure for automatic annual adjustment of road tolls

Tax relief and exemptions proposed in the budget include:

  • A permanent tax-exemption of capital gains on listed securities
  • COVID-19-related relief for certain taxpayers including a waiver of penalty and interest on accumulated tax arrears up to December 2020; a 30% rebate on the income tax due for companies in hotel and restaurant, education, arts and entertainment, and travel and tourism for the second, third, and fourth quarters of 2021; and suspension of the quarterly income tax instalment payments for the second, third, and fourth quarters of 2021 for certain small businesses

Other tax-related items in the 2021 budget provide for:

  • The appointment of the executive secretary and members of the independent Tax Appeals Board by the first half of 2021
  • Voluntary disclosures
  • Guidelines for the taxation of e-services
  • A heightened focus of tax audits on entities in the “downstream” petroleum sector
  • Replacing the Ghana card unique identification number (GUIN) with a tax identification number (TIN)


Read a March 2021 report [PDF 1.56 MB] prepared by the KPMG member firm in Ghana

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