Ghana Revenue Authority (GRA) has issued a clarification regarding its decision to tax the foreign incomes of resident Ghanaians.

This comes after the initial announcement of the tax measure was met with some confusion and concern among the public amid the current economic hardship Ghanaians are already facing.

The government announced the decision on Monday, April 15, in place of the suspended VAT on electricity, which it said created a revenue gap of about GH¢1.8 billion.

Hence for clarity, the Authority released a statement on Monday, April 22, explaining which individuals would be affected by the said tax.

According to GRA, individuals considered residents for tax purposes include citizens with a permanent home in Ghana who reside in the country throughout the year, those present in Ghana for at least 183 days in any 12-month period that begins or ends within the year, and government employees or officials posted abroad, among others.

Parts of the statement also urged individuals who are going to be affected by this tax embark on voluntary disclosure of their foreign income starting May 1 to benefit from a waiver on the interest on their account.

“To facilitate easier declaration and payment of taxes for resident individuals to report of undisclosed incomes, the GRA has opened a special window for taxpayers to rectify their records.

All eligible individuals are strongly encouraged to utilise this opportunity to regularise their tax affairs,” GRA added in the statement.

The taxing of these Ghanaians is to replace the suspended VAT on electricity, which the government stated had resulted in a revenue gap of approximately GH¢1.8 billion.

Meanwhile, GRA defended its tax decision, citing the Tax Act 2015 (Act 896) as the legal basis for the move.

The Tax Act 2015 (Act 896) stipulates the rules, regulations, and procedures governing various aspects of taxation, including income tax, value-added tax (VAT), customs duties, and other levies.

The Act specifies the obligations of taxpayers, the powers and responsibilities of tax authorities such as the Ghana Revenue Authority (GRA), and the penalties for non-compliance.