GRA clarifies tax status of resident individuals earning income abroad

The Ghana Revenue Authority (GRA) has clarified the legal definition of a resident individual for tax purposes in Ghana, following concerns from the public on whether individuals earning incomes abroad are considered residents under the country's tax laws.

In a statement issued on Monday, April 22, the GRA stated that individuals are considered residents for tax purposes if they are Ghanaian citizens with a permanent home in the country and reside here throughout the year.

Such residents include government employees or officials posted abroad.

The statement also noted that citizens temporarily absent from Ghana for not more than 365 continuous days, but who maintain a permanent home in the country, are also considered resident individuals.

The GRA further noted that citizens present in Ghana for at least 183 days in any 12-month period that begins or ends within the year are deemed resident individuals.

To facilitate easier declaration and payment of taxes by resident individuals with undisclosed foreign incomes, the GRA announced the opening of a special window to allow eligible taxpayers to regularize their tax affairs.

"The legal definition of a resident individual for tax purposes is grounded in the Income Tax Act 2015 (Act 896), Sections 3 (2) (a), 103, and 111," said the GRA in the statement.