- 8 Marks
Question
Lawaaba Guo is a Ghanaian born in Nigeria and has lived all his life there. He got an opportunity to relocate to Ghana and took up an appointment as a lecturer in one of the prestigious universities within the first three months of his arrival in Ghana in 2018.
He took up employment with ABB Ltd as a procurement officer. The following relates to his employment details for 2020 year of assessment:
- Salary: GH¢200,000
- Commission from employers: GH¢10,000
- Interest on savings from a Bank in Ghana (Gross): GH¢1,000
His investment income and other returns received from Nigeria are as follows:
- Dividend of US$ 12,000 net of tax. Tax of US$ 1,000 was paid.
- Rental Income of USD 6,000 gross with tax at the rate of 10%.
- On-line consultancy fee USD 20,000 net of tax. Tax of USD1,500 was paid.
Additional information:
- He is married.
- Children (2): both schooling in Nigeria.
- Contributes to Social Security at 5.5%.
- Exchange Rate USD1 = GH¢5.2.
Required:
Determine the following:
i) Chargeable Income
ii) Tax Payable
iii) Amount of foreign credit relief granted
Answer
Computation of tax payable
Y/A 2020
Basis Period: 1/1/20 – 31/12/20
- Tags: Foreign income, Foreign Tax Credit, Resident Income, Tax computation
- Level: Level 3
- Topic: International taxation
- Series: APR 2022
- Uploader: Joseph