- 3 Marks
Question
What is the tax implication of the concepts “Trading in Ghana” and “Trading with Ghana” in tax administration arrangement?
Answer
Trading in Ghana connotes a non-resident person having business presence in Ghana and competing with local businesses. It implies, in simple terms, having a permanent establishment. This creates tax obligations for the non-resident person within Ghana.
Trading with Ghana, on the other hand, does not imply having a business presence in Ghana. It means conducting business with entities in Ghana from outside the country without establishing a permanent establishment within Ghana. This does not create any tax obligations for the non-resident person within Ghana.
- Tags: International Taxation, Permanent Establishment, Tax implications
- Level: Level 3
- Topic: International taxation, Tax administration in Ghana
- Series: NOV 2019
- Uploader: Theophilus