the source of income tax juridiction in ghana

 the source of income tax juridiction in ghana Essay


By Isaac Nyame & Abdallah Ali-Nakyea of WTS Nakyea & Adebiyi (Tax Legal professionals & Solicitors)


The FIFA world cup Verbena in S. africa came to an extremely successful end on Saturday, 11 This summer 2010. It is hailed, and rightly therefore , by most football commentators as one of the the majority of successful worldwide sporting events structured by a great African Region. Once again Ghanaian footballers manufactured us proud by investing in their best to get to the one fourth finals. Ideally, they can turn this marvelous performance in the next World Glass to be staged in Brazil in 2014. We declare BRAVO and KUDOS to the Playing physique and the Officials.

A few issues have come up concerning taxation of earnings of your Black Superstar team and their handlers/officials through the World Glass 2010. There were as usual debates in the papers, radio stations and also other quarters as to whether the footballers and their handlers are required to pay taxes in Ghana or perhaps not. The goal of this article is to clarify the taxation concerns relating to the earnings of the footballers and their representatives.

Understanding some duty concepts

From the examining of the Inner Revenue Act, 2000 (Act 592) (IRA) (as amended), it can be noted that taxation of cash flow in Ghana is based on the premise that the income is accruing in, derived from, brought into or received in Ghana in regards to business, employment or expenditure during the taxes year except where the particular income is exempt from tax. This is specifically so in the event the recipient of the income is known as a " resident” person. The word " resident” as opposed to a " citizen” is used inside the context in the IRA intended for purposes of tax. In simple terms, a homeowner individual can be an individual who is a citizen of Ghana (but not a resident who has an everlasting home exterior Ghana for the whole of the season of assessment). As mentioned above, salary from business will be liable to...