Key Changes Under The Income Tax (Amendment) Act, 2023 (Act 1094)

The Income Tax (Amendment) Act, 2023 (Act 1094) (the Income Tax Amendment) was enacted on 31 March 2023 and became effective on 3 April 2023, following presidential assent and its publication in the gazette. The purpose of this update is to highlight and comment on the key changes the Income Tax Amendment introduces to Ghana's income tax regime.

Key Changes

1. Imposition of withholding tax on the realisation of assets and liabilities

Prior to the enactment of the Income Tax Amendment, there was no withholding tax on the realisation (i.e., sale, transfer or other form of disposition) of assets and liabilities. Further, corporates and other non-natural persons were required to pay tax on the gains made from the sale of their assets when making payments in respect of their chargeable income for the year of assessment in which the realisation occurred (i.e., there was no separate capital gains tax regime for such entities). In the securities industry, gains