Ghanaian tax expert, Dr. Ali Abdullah Nakyea, endorses the Ghana Revenue Authority’s (GRA) policy on taxing foreign earnings of resident Ghanaians.
Dr. Nakyea emphasizes that this shouldn’t be seen as double taxation but as a step towards fairer taxation and national development.
He explains that residents with foreign assets contribute to those countries through taxes. Therefore, it’s fair for them to contribute to Ghana’s tax system.
This aligns with the recent announcement by the Ghana Revenue Authority (GRA) that they will begin taxing foreign income earned by Ghanaians who spend at least 183 days in Ghana.
“I think that in the spirit of fair taxation, you have to disclose and contribute to what they have to give the government of Ghana because it does not amount to double taxation because we have gone on to the worldwide income. Our tax law gives you an automatic tax credit. So, if they access your foreign income to tax, all you need to do is bring evidence of the taxes you pay in those countries. And then the GRA will consider it in reducing the tax you are to pay here,” he stated.
Dr. Nakyea asked Ghanaians who earned money abroad to disclose their income by GRA standards. He emphasized a significant clause in Ghana’s tax code that permits automatic tax credits, allowing people to reduce their tax obligations by offsetting taxes they have paid outside against their local tax obligations.
He explained, “You don’t end up paying double tax. There is an automatic tax credit. You see, all those countries are citizens working here, as are all the expatriates we find here. They pay their taxes in their home countries as well.”
Dr. Nakyea explained that taxes are not applied uniformly across all populations, despite common misunderstandings to the contrary. To ensure that the tax burden is equitable and balanced, it will be determined using each person’s income category.
