TIG Post

Tag: Income

  • GRA provides clarity on tax status for individuals earning foreign incomes

    GRA provides clarity on tax status for individuals earning foreign incomes


    The Ghana Revenue Authority (GRA) has offered clarification regarding the tax status of individuals earning incomes abroad and whether they are classified as “resident individuals” according to tax laws.

    In a statement released by the Authority on April 22, 2024, it explained that the legal definition of a resident individual for tax purposes is established in the Income Tax Act 2015 (Act 896), specifically in Sections 3 (2) (a), 103, and 111.

    Additionally, the statement outlined the individuals recognized as resident for tax purposes.

    1. Are citizens with a permanent home in Ghana residing in the country throughout the year.

    2. Are present in Ghana for at least 183 days in any 12-month period that begins or ends within the year.

    3. Include government employees or officials posted abroad.

    4. Are citizens temporarily absent from Ghana for not more than 365 continuous days who maintain a permanent home in Ghana.

    The Ghana Revenue Authority (GRA) has offered clarification regarding the tax status of individuals earning incomes abroad and whether they are classified as “resident individuals” according to tax laws.

    “All eligible individuals are strongly encouraged to utilize this opportunity to regularize their tax affairs,” the GRA noted.

    The government, in partnership with the Ministry of Finance and GRA, has decided to fully enforce existing tax compliance measures as part of its endeavors to address the country’s long-term fiscal requirements, particularly in revenue generation.

    This action aims to effectively substitute the anticipated GH¢1.8 billion revenue target, signifying a notable transformation in the nation’s tax policy framework.

  • 64% of Ghanaian employees are stressed due to low incomes – Report

    64% of Ghanaian employees are stressed due to low incomes – Report

    The 2023 Old Mutual Financial Services Monitor has disclosed that 64% of employed Ghanaians are facing financial stress, especially those with lower incomes (below GH¢3,000 per month) and those engaged in the informal sector.

    A significant 55% reported earning less than pre-2022 or recession levels.

    Instead of relying on personal savings, the majority (61%) turned to personal loans or borrowed from formal financial institutions to cover expenses.

    The report highlighted that 54% depend on personal savings as a source of income.

    Although only 10% sought loans from financial service providers, 24% borrowed from friends/family, and an additional 12% from a Susu.

    “In an effort to make ends meet, 61% have dipped into their savings. 54% rely on their personal savings as a source of income.

    “The incidence of taking out a loan from a financial services provider is low at 10%, but consumers are turning to other sources of borrowing – 24% have borrowed from friends/family, and a further 12% have borrowed from a Susu”.

    The report revealed that just over half of Ghanaian consumers are currently earning less than a year ago, predating the recession in September 2022.

    Consumer confidence in the Ghanaian economy is low, with less than one in six expressing confidence.

    Despite economic challenges, over 90% of Ghanaians believe their financial situation will improve in the next six months.

    The report attributes the tough economic environment to global and African factors such as poverty, debt, and rising food prices, impacting consumers worldwide and in Africa. The escalating cost of living has added pressure and eroded consumer buying power.

    The Old Mutual Financial Services Monitor aims to understand the financial behavior, perceptions, and attitudes of the working population in Ghana, offering a consumer perspective to economic data.

  • Consistently save 10% of your monthly income if you don’t want to be poor – CEO of OctaneDC

    Consistently save 10% of your monthly income if you don’t want to be poor – CEO of OctaneDC

    The CEO of OctaneDC,  Dr. Suzy Aku Puplampu, has shared valuable insights for individuals especially those under the age of 30,  emphasizing the importance of consistent savings and smart investments.

    In an interview with TV3 Dr. Puplampu recommended individuals allocate a minimum of 10% of one’s earnings for savings.

    “Under 30, starting at a base of 10% of your earnings, let’s say 1,000 on a regular basis. Constituency is very important, you don’t start and stop.” If you earn GHC1000 every month, you should at least save GHC100 every month,” she added.

    Addressing the question of what to do with the accumulated savings at the end of the year, Dr. Puplampu highlighted the core principle: “The idea is to invest it in something.”

    She stressed the importance of strategic investment, emphasizing that merely saving is not enough.

    “Investing will come with an interest which will help you have a little above what you have saved,” she added.

    OctaneDC is a Ghanaian-owned investment advisory and fund management firm, operating under the regulatory oversight of the Securities and Exchange Commission (SEC).

    Its commitment lies in delivering tailored fund management and advisory services to both individuals and institutions.

    Within its comprehensive range of offerings, OctaneDC specializes in providing services such as mutual funds, pension funds, portfolio management (with a focus on High-Net-Worth Individuals), institutional funds, endowment funds, and support for investment clubs.

    Through diverse portfolio, OctaneDC aims to cater to the distinct financial needs and objectives of its clientele, ensuring a bespoke and effective approach to wealth management.

  • Biden cancels $39b debt in US student loan

    The Education Department said on Friday that the administration of U.S. President Joe Biden will forgive $39 billion in student loans for more than 804,000 students.

    The department attributed the relief to a “fix” to income-driven repayment (IDR) plans.

    According to the agency, borrowers will be qualified for forgiveness after 20 or 25 years of consistent IDR payments.

    Lower-income borrowers’ monthly payments are capped under the IDR scheme, and after a certain period of time, the remaining sum is forgiven.