South Africa: Africa Tax In Brief

Last Updated: 2 September 2013
Article by Celia Becker

Most Read Contributor in South Africa, September 2018

Country

Topic

Ghana

New Tax Bills

The Government of Ghana has introduced five new Bills, aimed at increasing revenue generation. Parliament has approved the following Bills, which are awaiting Presidential assent to enter into force:

Customs and Excise (Duties and Other Taxes) Amendment Bill

Amendments proposed by the Bill include:

  • Imposition of 20% import duty on telephone sets, including mobile, cellular and satellite phones; and
  • Levying of an ad-valorem duty (an environmental excise tax) of 5% of the ex-factory price of plastic and plastic products. The duty shall be calculated on the Cost, Insurance and Freight ("CIF") value of imported goods and shall be paid at the point of importation.

Further updates to the Bill were announced during Parliamentary proceedings of 4 July 2013, including a proposed increase in the environmental excise tax from 5% to 10%.

Special Import Levy Bill ("SILB")

The SILB imposes special import levies on the importation of specified goods at the point of importation during the period 2013 – 2015.

Affected goods include:

  • Machinery and equipment listed under Chapters 84 and 85 of the Harmonized System and Customs Tariff Schedules 2012 ("the HS Code") –a levy of 1% of CIF value;
  • Fertilizers listed under Chapter 31 of the HS Code – a levy of 2% of CIF value; and
  • All goods except Petroleum Products listed under Headings 27.09 and 27.10 of Chapter 27 of the HS Code – a levy of 2% of CIF value.

Communication Services Tax (Amendment) Bill ("CSTB")

The main purpose of the CSTB is to clarify the scope and coverage of the Communication Service Tax ("CST") introduced in 2008.

The Bill follows on the landmark judgment of the Commercial Division of the Accra Fast Track High Court in favour of telecom companies, effectively barring the Ghana Revenue Authority ("GRA") from collecting CST on interconnect services.

The CSTB intends to widen the scope of CST to include inter alia:

  • Operators or providers of electronic communication network or services as long as they use electronic communications;
  • Interconnect services;
  • Charges payable on Electronic Communication Services ("ECS") received by users from outside Ghana (i.e. international interconnect services);
  • Any supply of ECS, regardless of the eligibility of the services provider to provide ECS under the Electronic Communications Act (Act 755) and its Regulations; and
  • Promotions, bonuses and gift offers run by service providers.

Value Added Tax Amendment Bill

In terms of the Amendment Bill, telephone handsets are to be removed from the list of supplies exempt from Value Added Tax ("VAT"). VAT at 15% (12.5% VAT and 2.5% National Health Insurance Levy ("NHIL")) is to be charged on the supply and import of telephone sets, including mobile or cellular phones and satellite phones.

The VAT and NHIL are to be levied in addition to the CST on communication usage referred to above.

National Fiscal Stabilisation Levy ("NFSL") Bill

The objective of the NFSL Bill is to re-impose NFSL at 5% on profits before tax of specified companies for a period of 18 months covering the 2013 and 2014 years of assessment.

Companies and Institutions liable to pay NFSL include:

  • Banks;
  • Non-bank Financial Institutions;
  • Insurance Companies;
  • Telecommunication companies liable to collect and pay CST;
  • Breweries;
  • Inspection and Valuation Companies;
  • Companies providing mining support services; and
  • Shipping Lines, Maritime and Airport Terminal Operators.

The levy will not be allowed as a deduction for corporate income tax purposes.

The GRA is to administer the levy, which is payable on a quarterly basis. For the 2013 year of assessment, a proportionate payment is due on 30 September 2013 and 31 December 2013.

Ghana Investment Promotion Centre Bill

In terms of the Ghana Investment Promotion Centre ("GIPC") Bill, to be passed by Parliament:

  • Entities in all sectors would have to comply with the new GIPC Act. The existing GIPC Act, 1994 (Act 478) does not cover mining and petroleum enterprises;
  • An enterprise in which there is foreign participation is prohibited from commencing operations unless it is registered with the GIPC;
  • Enterprises which are wholly owned by Ghanaians is entitled to register with the GIPC, which would provide access to the benefits and incentives provided for by the GIPC;
  • The minimum foreign capital investment by non-Ghanaians is to be increased to USD50 000 (previously USD10 000) in the case of a joint enterprise with a Ghanaian partner and USD200 000 (previously USD50 000) in the case of an enterprise wholly-owned by a non-Ghanaian; and
  • Automatic expatriate quotas are linked to higher and expanded foreign capital brackets and extended monitoring and control of expatriate employment are expected.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

To print this article, all you need is to be registered on Mondaq.com.

Click to Login as an existing user or Register so you can print this article.

Authors
 
Some comments from our readers…
“The articles are extremely timely and highly applicable”
“I often find critical information not available elsewhere”
“As in-house counsel, Mondaq’s service is of great value”

Related Topics
 
Related Articles
 
Up-coming Events Search
Tools
Print
Font Size:
Translation
Channels
Mondaq on Twitter
 
Register for Access and our Free Biweekly Alert for
This service is completely free. Access 250,000 archived articles from 100+ countries and get a personalised email twice a week covering developments (and yes, our lawyers like to think you’ve read our Disclaimer).
 
Email Address
Company Name
Password
Confirm Password
Position
Mondaq Topics -- Select your Interests
 Accounting
 Anti-trust
 Commercial
 Compliance
 Consumer
 Criminal
 Employment
 Energy
 Environment
 Family
 Finance
 Government
 Healthcare
 Immigration
 Insolvency
 Insurance
 International
 IP
 Law Performance
 Law Practice
 Litigation
 Media & IT
 Privacy
 Real Estate
 Strategy
 Tax
 Technology
 Transport
 Wealth Mgt
Regions
Africa
Asia
Asia Pacific
Australasia
Canada
Caribbean
Europe
European Union
Latin America
Middle East
U.K.
United States
Worldwide Updates
Registration (you must scroll down to set your data preferences)

Mondaq Ltd requires you to register and provide information that personally identifies you, including your content preferences, for three primary purposes (full details of Mondaq’s use of your personal data can be found in our Privacy and Cookies Notice):

  • To allow you to personalize the Mondaq websites you are visiting to show content ("Content") relevant to your interests.
  • To enable features such as password reminder, news alerts, email a colleague, and linking from Mondaq (and its affiliate sites) to your website.
  • To produce demographic feedback for our content providers ("Contributors") who contribute Content for free for your use.

Mondaq hopes that our registered users will support us in maintaining our free to view business model by consenting to our use of your personal data as described below.

Mondaq has a "free to view" business model. Our services are paid for by Contributors in exchange for Mondaq providing them with access to information about who accesses their content. Once personal data is transferred to our Contributors they become a data controller of this personal data. They use it to measure the response that their articles are receiving, as a form of market research. They may also use it to provide Mondaq users with information about their products and services.

Details of each Contributor to which your personal data will be transferred is clearly stated within the Content that you access. For full details of how this Contributor will use your personal data, you should review the Contributor’s own Privacy Notice.

Please indicate your preference below:

Yes, I am happy to support Mondaq in maintaining its free to view business model by agreeing to allow Mondaq to share my personal data with Contributors whose Content I access
No, I do not want Mondaq to share my personal data with Contributors

Also please let us know whether you are happy to receive communications promoting products and services offered by Mondaq:

Yes, I am happy to received promotional communications from Mondaq
No, please do not send me promotional communications from Mondaq
Terms & Conditions

Mondaq.com (the Website) is owned and managed by Mondaq Ltd (Mondaq). Mondaq grants you a non-exclusive, revocable licence to access the Website and associated services, such as the Mondaq News Alerts (Services), subject to and in consideration of your compliance with the following terms and conditions of use (Terms). Your use of the Website and/or Services constitutes your agreement to the Terms. Mondaq may terminate your use of the Website and Services if you are in breach of these Terms or if Mondaq decides to terminate the licence granted hereunder for any reason whatsoever.

Use of www.mondaq.com

To Use Mondaq.com you must be: eighteen (18) years old or over; legally capable of entering into binding contracts; and not in any way prohibited by the applicable law to enter into these Terms in the jurisdiction which you are currently located.

You may use the Website as an unregistered user, however, you are required to register as a user if you wish to read the full text of the Content or to receive the Services.

You may not modify, publish, transmit, transfer or sell, reproduce, create derivative works from, distribute, perform, link, display, or in any way exploit any of the Content, in whole or in part, except as expressly permitted in these Terms or with the prior written consent of Mondaq. You may not use electronic or other means to extract details or information from the Content. Nor shall you extract information about users or Contributors in order to offer them any services or products.

In your use of the Website and/or Services you shall: comply with all applicable laws, regulations, directives and legislations which apply to your Use of the Website and/or Services in whatever country you are physically located including without limitation any and all consumer law, export control laws and regulations; provide to us true, correct and accurate information and promptly inform us in the event that any information that you have provided to us changes or becomes inaccurate; notify Mondaq immediately of any circumstances where you have reason to believe that any Intellectual Property Rights or any other rights of any third party may have been infringed; co-operate with reasonable security or other checks or requests for information made by Mondaq from time to time; and at all times be fully liable for the breach of any of these Terms by a third party using your login details to access the Website and/or Services

however, you shall not: do anything likely to impair, interfere with or damage or cause harm or distress to any persons, or the network; do anything that will infringe any Intellectual Property Rights or other rights of Mondaq or any third party; or use the Website, Services and/or Content otherwise than in accordance with these Terms; use any trade marks or service marks of Mondaq or the Contributors, or do anything which may be seen to take unfair advantage of the reputation and goodwill of Mondaq or the Contributors, or the Website, Services and/or Content.

Mondaq reserves the right, in its sole discretion, to take any action that it deems necessary and appropriate in the event it considers that there is a breach or threatened breach of the Terms.

Mondaq’s Rights and Obligations

Unless otherwise expressly set out to the contrary, nothing in these Terms shall serve to transfer from Mondaq to you, any Intellectual Property Rights owned by and/or licensed to Mondaq and all rights, title and interest in and to such Intellectual Property Rights will remain exclusively with Mondaq and/or its licensors.

Mondaq shall use its reasonable endeavours to make the Website and Services available to you at all times, but we cannot guarantee an uninterrupted and fault free service.

Mondaq reserves the right to make changes to the services and/or the Website or part thereof, from time to time, and we may add, remove, modify and/or vary any elements of features and functionalities of the Website or the services.

Mondaq also reserves the right from time to time to monitor your Use of the Website and/or services.

Disclaimer

The Content is general information only. It is not intended to constitute legal advice or seek to be the complete and comprehensive statement of the law, nor is it intended to address your specific requirements or provide advice on which reliance should be placed. Mondaq and/or its Contributors and other suppliers make no representations about the suitability of the information contained in the Content for any purpose. All Content provided "as is" without warranty of any kind. Mondaq and/or its Contributors and other suppliers hereby exclude and disclaim all representations, warranties or guarantees with regard to the Content, including all implied warranties and conditions of merchantability, fitness for a particular purpose, title and non-infringement. To the maximum extent permitted by law, Mondaq expressly excludes all representations, warranties, obligations, and liabilities arising out of or in connection with all Content. In no event shall Mondaq and/or its respective suppliers be liable for any special, indirect or consequential damages or any damages whatsoever resulting from loss of use, data or profits, whether in an action of contract, negligence or other tortious action, arising out of or in connection with the use of the Content or performance of Mondaq’s Services.

General

Mondaq may alter or amend these Terms by amending them on the Website. By continuing to Use the Services and/or the Website after such amendment, you will be deemed to have accepted any amendment to these Terms.

These Terms shall be governed by and construed in accordance with the laws of England and Wales and you irrevocably submit to the exclusive jurisdiction of the courts of England and Wales to settle any dispute which may arise out of or in connection with these Terms. If you live outside the United Kingdom, English law shall apply only to the extent that English law shall not deprive you of any legal protection accorded in accordance with the law of the place where you are habitually resident ("Local Law"). In the event English law deprives you of any legal protection which is accorded to you under Local Law, then these terms shall be governed by Local Law and any dispute or claim arising out of or in connection with these Terms shall be subject to the non-exclusive jurisdiction of the courts where you are habitually resident.

You may print and keep a copy of these Terms, which form the entire agreement between you and Mondaq and supersede any other communications or advertising in respect of the Service and/or the Website.

No delay in exercising or non-exercise by you and/or Mondaq of any of its rights under or in connection with these Terms shall operate as a waiver or release of each of your or Mondaq’s right. Rather, any such waiver or release must be specifically granted in writing signed by the party granting it.

If any part of these Terms is held unenforceable, that part shall be enforced to the maximum extent permissible so as to give effect to the intent of the parties, and the Terms shall continue in full force and effect.

Mondaq shall not incur any liability to you on account of any loss or damage resulting from any delay or failure to perform all or any part of these Terms if such delay or failure is caused, in whole or in part, by events, occurrences, or causes beyond the control of Mondaq. Such events, occurrences or causes will include, without limitation, acts of God, strikes, lockouts, server and network failure, riots, acts of war, earthquakes, fire and explosions.

By clicking Register you state you have read and agree to our Terms and Conditions