Jennifer Ayampoka Kukua, CA

Introduction The Electronic Transfer Levy (E-Levy) was introduced by the Government of Ghana on 17th November 2021 as a tax on digital financial transactions. Initially proposed at 1.75%, the final rate was pegged at 1% through the passage of the Electronic Transfer Levy Act, 2022 (Act 1075) and its amendment,  Act 1089 . The levy, administered by the Ghana Revenue Authority (GRA) , applied to a range of electronic transactions including: ·         Mobile money transfers between accounts on the same or different electronic money issuers. ·         Transfers between bank accounts and mobile money wallets. ·         Instant bank transfers through digital platforms or applications, originating from an individual’s account (subject to a daily threshold). Following the 2024 General Elections, the new government officially abolished the E-Levy as part of its campaign pro...

Understanding and complying with Ghana’s tax laws not only ensures legal and financial security but also provides businesses and individuals with various tax reliefs designed to reduce their tax burden. What Are Tax Reliefs? Tax reliefs are allowances granted to resident individuals and corporate entities to lower their taxable income, ultimately reducing the amount of tax payable. In Ghana, the tax system applies graduated tax rates to the chargeable income of resident individuals (such as sole proprietors, employees, and partners in a partnership), while corporate entities are taxed at a standard corporate tax rate. These reliefs are deducted when calculating chargeable income from business, employment, or investment sources. Types of Tax Reliefs 1. Personal Reliefs According to Section 51 of the Income Tax Act, 2015 (Act 896), personal reliefs are available to resident individuals and are deducted when determining chargeable income. These reliefs, outlined in the Fifth Sch...

What is Withholding Tax (WHT)? Withholding Tax (WHT) is a tax deducted at source by a withholding agent before making final payments to a seller, contractor, or consultant. The withholding agent (resident individual or entity), is responsible for withholding the tax when making payments to resident or non-resident persons. The amount withheld is subsequently remitted to the Ghana Revenue Authority (GRA). The power to deduct or withhold is provided by the Income Tax Act, 2015 (ACT 896). The Act provides the following rates to be applied to a resident person: 1.      The supply of goods - 3% 2.      The supply of works - 5% 3.      The supply of services – 7.5%. The rate for a non–resident person is 20% on Goods, Services, and Works. Definition of Key Terms 1. Goods “Goods” refer to objects of every kind, including raw materials, products, and equipment, as well as solid, liquid, or gaseous items, and electricity. It also inclu...

  Definition Petty cash is a small amount of money an organization keeps on hand to pay for minor expenses. This amount, referred to as the Petty Cash Float , is approved based on the organization’s policy. The Petty Cash Custodian , designated according to the company’s procedures, is responsible for managing petty cash transactions. This individual handles all approved transactions, maintains records (vouchers and receipts), and accounts for the float when it is exhausted. Payments and replenishments are made following established guidelines to ensure accountability. Who is the Petty Cash Custodian? The custodian role is assigned based on company policy and may be filled by: An Assistant Accountant A Cashier An Accountant Purpose of Petty Cash Float The petty cash float serves the following purposes: To ensure liquidity for small, immediate expenses. To prevent delays in processing minor payments. Enhance  financial control and account...

INTRODUCTION International Financial Reporting Standards (IFRS) are essential guidelines in the global accounting landscape, providing a unified framework for financial reporting. IFRS, which includes both International Accounting Standards (IAS) and IFRS, is designed to ensure consistency, transparency, and comparability of financial statements across the world. KEY DIFFERENCES BETWEEN IAS AND IFRS IAS represents the earlier version of the accounting standards, while IFRS is the more recent and widely adopted framework. IFRS offers more detailed requirements and covers a broader range of accounting issues, making it the preferred standard for financial reporting worldwide. DEVELOPMENT OF IFRS In Ghana, IFRS is a crucial part of the regulatory framework, complementing the Ghana Companies Code and the Ghana Stock Exchange listing rules. The consistency and comparability provided by IFRS are vital for entities operating in a global environment. New IFRS standards are developed by the Int...

INTRODUCTION Accountants, whether in business or practice, follow a set of accounting rules and guidelines (principles) to ensure they are consistent, transparent, and easily comparable worldwide. The foundation of these principles is deeply rooted in history. HISTORY OF ACCOUNTING Financial Accounting Reporting transitioned from the Ancient Civilization days of Mesopotamia more than 7,000 years ago. The Mesopotamians kept records of goods traded and received, the record-keeping of ancient Egyptians and Babylonians. They used primitive accounting methods to keep detailed records of transactions involving animals, livestock, and crops. Bookkeepers emerged when the barter system was practiced by societies, who needed to record the agreement made regarding goods and services transacted before 2000 B.C. Ledgers emerged from the practice, and accountancy can be traced back to the 13 th century. New and improved ledgers became available, and tradesmen and merchants began to build ma...