Gift tax is typically imposed on the recipient of the gift
You may have heard of gift tax before, but may not know the full details of what it entails.
Following Agradaa’s receival of dollars from the Acting Chief Executive Officer of Goldbod, Sammy Gyamfi, a former Member of Parliament for Kumbungu Constituency, Ras Mubarak, has called on the Ghana Revenue Authority (GRA) to ensure she pays the required gift tax on the amount received.
According to the GRA, a gift tax is payable when a person receives a gift related to employment, business, or investment.
This tax measure is typically imposed on the recipient of the gift.
In Ghana, gift tax is governed by the Income Tax Act, 2015 (Act 896). While donors may need to report gifts above a certain threshold, the law does not explicitly specify a fixed amount.
The government’s revenue collection agency imposes gift tax to prevent individuals from transferring wealth in a way that avoids tax payments.
It also serves as a mechanism to increase state revenue.
Some gifts may be exempted from taxation if they come from spouses, charities, or charitable organisations.
Also, if the gift was acquired through a will, intestacy, or as a transfer to a spouse, child, or parent, then no gift tax will be required.
How to File for Gift Tax:
Recipients of taxable gifts must submit a tax return to the Ghana Revenue Authority within 21 days.
Required details include:
Description and location of the taxable gift
Total value of the gift
Calculation of tax payable
Donor’s full name and address
SA/AE
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