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- 10 Marks
Question
The following information is available to you as a tax consultant:
| Description | Amount (GH¢) |
|---|---|
| Dividend paid to resident person | 100,000 |
| Dividend paid to non-resident person | 200,000 |
| Payment of goods to resident person | 300,000 |
| Payment of goods to non-resident person | 400,000 |
| Rent – residential property | 150,000 |
| Rent – commercial property | 300,000 |
| Natural Resource Payment | 1,000,000 |
| Management and Technical Service fees to non-resident | 400,000 |
| Interest paid to resident financial institution | 20,000,000 |
| Royalty paid to non-resident person | 400,000 |
Required: Compute taxes from the above information and indicate whether the tax is final or not final.
Answer
| Description | Amount (GH¢) | Tax Rate (%) | Tax to be Withheld (GH¢) | Remarks |
|---|---|---|---|---|
| Dividend paid to resident person | 100,000 | 8 | 8,000 | Final Tax |
| Dividend paid to non-resident person | 200,000 | 8 | 16,000 | Final Tax |
| Payment of goods to resident person | 300,000 | 3 | 9,000 | Not a Final Tax |
| Payment of goods to non-resident person | 400,000 | 20 | 80,000 | Final Tax |
| Rent – residential property | 150,000 | 8 | 12,000 | Final Tax |
| Rent – commercial property | 300,000 | 15 | 45,000 | Final Tax |
| Natural Resource Payment | 1,000,000 | 15 | 150,000 | Not a Final Tax |
| Management and Technical Service fees to non-resident | 400,000 | 20 | 80,000 | Final Tax |
| Interest paid to resident financial institution | 20,000,000 | 0 | 0 | Exempt |
| Royalty paid to non-resident person | 400,000 | 15 | 60,000 | Final Tax |
- Tags: Dividend, Final Tax, Goods payment, Non-resident, Rent, Withholding Tax
- Level: Level 2
- Topic: Withholding Tax Administration
- Series: JULY 2023
- Uploader: Kwame Aikins