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Ghana Budget 2023 Includes Additional Top individual income tax Rate, Increased VAT Rate, and Other Measures — Orbitax Tax News & Alerts

Ghana's Ministry of Finance has published the 2023 Budget Statement delivered in parliament on 24 November 2022. Tax measures announced as part of the budget include the following:

  • The introduction of an additional top individual income tax bracket with a rate of 35%;
  • An increase in the concessional tax rate of 1% to 5% for certain activities/sectors, along with the implementation of a minimum chargeable income system;
  • The unification of the loss carried forward provisions in the Income Tax Act (currently 3 years in general and 5 years for prior sectors), along with a restriction on foreign exchange losses to actual losses;
  • An increase in the VAT rate from 12.5% to 15.0%, along with a review of the VAT threshold and exemptions;
  • The conversion of the National Fiscal Stabilization Levy (NFSL) into a Growth and Sustainability Levy (GSL) that covers all entities with the following rates:
    • 5% on profit before tax for Category A entities, comprising those currently paying the NFSL and six additional sectors;
    • 2.5% on profit before tax for Category B entities, comprising all other entities (with the exception of the extractive sector); and
    • 1.0% of production for Category C entities, comprising entities operating in the extractive sector;
  • A reduction in the Electronic Transfer Levy headline rate to 1% of the transaction value, along with the removal of the daily threshold.

Further details of the budget measures will be published once available.