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- 4 Marks
Question
At a public symposium, a tax administrator made a statement to the effect that withholding taxes must be exacted from any payment made to persons around the world for goods, works, and services.
Required:
Evaluate the extent to which this statement is true in the light of the tax provisions of the Income Tax Act, 2015 (Act 896) as amended.
Answer
An authorised agent is required to withhold tax from payment to a withholdee. The withholdee could be resident or non-resident. In the case of the resident, there are some situations where there is an exemption. In the case of a non-resident, withholding is only relevant when the person is trading in Ghana. In the case of trading with Ghana, withholding taxes do not apply to such transactions.
- Tags: Income Tax Act, International tax, Withholding Tax
- Level: Level 3
- Topic: International taxation
- Series: MAY 2021
- Uploader: Joseph