The Ghana Revenue Authority (GRA) is considering an expansion of the Modified Taxation Scheme (MTS) to include qualifying small limited liability companies with an annual turnover of up to GH¢750,000.
The proposed tax reform is aimed at creating a more simplified and business-friendly tax system for small businesses in Ghana, while reducing the compliance burden faced by enterprises operating on a smaller scale.
Under the proposed changes, eligible businesses structured as individual businesses, sole proprietorships, partnerships and limited liability companies could benefit from the simplified taxation system.
The move would allow qualifying small businesses to operate under a simplified tax regime, instead of facing tax compliance requirements primarily designed for larger corporate organisations.
GRA Announces Proposed Tax Reform
The policy direction was announced by GRA Commissioner-General Anthony Kwasi Sarpong during an MTS stakeholder workshop in Accra last week.
The Commissioner-General’s speech was delivered on his behalf by his Technical Advisor and Chairperson of the Modified Taxation Scheme Committee, Elsie Appau-Klu.
The proposed expansion forms part of efforts by the Ghana Revenue Authority to improve tax compliance, simplify tax administration and make the country’s tax system more responsive to the needs of small and medium-sized businesses.
If implemented, the reform could provide qualifying businesses with a more straightforward approach to meeting their tax obligations in Ghana, while supporting efforts to broaden the tax base and improve revenue mobilisation.
Source: newsthemegh.com