Businesses will now be allowed to carry forward their losses for purposes of taxation.
This is according to the Ghana Revenue Authority (GRA).
The new policy follows the passage of the new Income Tax Act 2015 (Act 896).
[contextly_sidebar id=”gh61tAgCQLNbdUITivPUOG4WqjYxNVJ3″]Businesses were prior to the amendment not granted any form of tax relief over losses made.
This was also cited as a disincentive to their operations.
Acting Deputy Commissioner, Policy Programmes at the GRA, Edward Gyamerah told Citi Business News the change will cushion businesses against the current economic challenges.
“This is as a result of the economic environment and the business climate our tax laws is trying to align itself with international laws and in most jurisdictions, losses are made to be carry forward so we cannot be in isolation,” Mr. Gyamerah said.
“This is good news for businesses because when you incur loss and the following year you make a gain then you know the loss you made can be offset against the gain made in subsequent years,” he added.
The New Income Tax Act which replaces the internal revenue Act, 2000(Act 592), is among other things expected to broaden the tax base; tackle erosion of the tax base as well as rationalize, streamline and restrict tax concessions.
By: Pius Amihere Eduku/citifmonline.com/Ghana