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Tax law

Ghana Revenue Authority Implements Key Policies to Boost Domestic Revenue

Strategic Insights

— 2 min read

As part of the government's comprehensive strategy to reduce reliance on debt financing and strengthen domestic revenue mobilization, the Ghana Revenue Authority (GRA) has announced the implementation of several key policies aimed at boosting domestic revenue. From July 1, 2025, the GRA will introduce the Modified Taxation Scheme (MTS), VAT on Real Estate, and VAT on Non-Life Insurance. The MTS is a simplified approach for informal sector and micro, small, and medium businesses, while the VAT on Real Estate will see estate developers charge a 5% VAT on the supply of immovable property.

Key Takeaways:

  • The Modified Taxation Scheme (MTS) is a simplified approach for informal sector and micro, small, and medium businesses, introducing a flexible framework targeting micro, small, and medium businesses across the country.
  • The MTS includes Presumptive Tax Based on Installments (PTI) for businesses with an annual turnover below GHS20,000, Presumptive Tax Based on Turnover (PTT) for businesses earning between GHS20,000 and GHS500,000 annually, and Modified Cash Basis (MCB) for businesses exceeding GHS20,000.
  • The GRA expects companies to update their accounting and invoicing systems to incorporate the VAT, train staff on the application and reporting on the VAT, communicate proactively with clients about the changes, and ensure timely registration for VAT.
  • VAT on the Rental of Immovable Property and the Supply of Immovable Property by Estate Developers will also be implemented, with a 5% VAT on immovable property for rental purposes and a 1% COVID-19 levy on the supply of immovable property.
  • The GRA will also implement the Special Voluntary Disclosure Program (SVDP), which provides an opportunity for resident persons to voluntarily disclose incomes earned abroad without incurring penalties.
  • Insurance providers will be required to charge a 15% VAT on all insurance premiums covered under the Value Added Tax (VAT) Amendment Act, 2023 (Act 1107).

Statistics:

  • Businesses with an annual turnover below GHS20,000 will be subject to a Presumptive Tax Based on Installments (PTI) of up to GHS45 per quarter.
  • Businesses earning between GHS20,000 and GHS500,000 annually will be subject to a Presumptive Tax Based on Turnover (PTT) rate of 3%.
  • Businesses exceeding GHS20,000 will be subject to a Modified Cash Basis (MCB) with graduated rates and allowable deductions.
  • The Modified Taxation Scheme (MTS) aims to target micro, small, and medium businesses across the country.
  • Estate developers will be required to charge a 5% VAT on the supply of immovable property, in addition to a 1% COVID-19 levy.

Sources:

  • Ghana Revenue Authority (GRA)
  • Ghana News Agency (GNA)
  • Income Tax Act, 2015 (Act 896)
  • Value Added Tax (VAT) Amendment Act, 2023 (Act 1107)

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