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- 4 Marks
Question
A resident person shall withhold tax on payments of any dividends, interests, rent, royalties, natural resources, and payments with a source in the country.
Required:
State FOUR (4) payments to which withholding tax does not apply.
(4 marks)
Answer
The following payments are exempt from withholding tax:
- Payments by Individuals (Non-Business Related):
Payments made by individuals unless made in the course of conducting a business are exempt from withholding tax. - Interest Paid to Resident Financial Institutions:
Interest payments made to resident financial institutions are not subject to withholding tax. - Exempt Amounts:
Payments that are considered as exempt amounts under the Income Tax Act are not subject to withholding tax. - Contract Sum Not Exceeding GH¢2,000:
Payments for the supply of goods, works, or services where the contract sum does not exceed GH¢2,000 for the year are exempt from withholding tax.
(Any 4 points @ 1 mark each = 4 marks)
- Tags: Exemptions, Income Tax, Withholding Tax
- Level: Level 2
- Topic: Withholding Tax Administration
- Series: MAR 2023
- Uploader: Joseph