Capital Gains Tax

Subject to Section 35 of Income Tax Act 896 , 2015,  as amended 

1. A gain made by a person from the realisation of an asset is the amount by which:

(a) The sum of the consideration received for the asset exceeds the cost of the asset at the time of realisation; or

(b) The sum of the consideration offered for the liability is less than the amount outstanding at the time of realisation.

    2. A loss of a person from the realisation of an asset or liability is the amount by which 

(a) The cost of the asset exceeds the sum of the consideration received for the asset at the time of realisation; or 

(b) The sum of the consideration offered for the liability is more than the amount outstanding at the time of realisation.

NB: The cost of acquisition, improvement, and legal fees and other expenses necessarily incurred in the process of selling the property, are deductible.

A person must submit a return (Capital Gain Tax Return) to the GRA which contains a summary of taxes payable on capital gains on chargeable assets wherever situated in the world if you are resident in Ghana and in the case of non-residents for assets situated in Ghana only, which have been sold or otherwise disposed of within a given year and make payment of taxes due. 

Assets and liabilities are deemed to be realized under the following circumstances:

A. if the person parts with the ownership of that asset under the following circumstances: when the asset is  

1. sold
2. exchanged 
3. transferred 
4. distributed
5. redeemed 
6. destroyed 
7. lost
8. expired or 
9. surrender

B. In the case of an asset of a person who ceases to exist, including because of death, immediately before that person ceased to exist

C. In the case of an asset other than trading stock or a depreciation asset, if the sum of the consideration received by that person from the sale of the asset exceeds the cost of that asset

D. in the case of an asset that is a debt claim owned by a person other than a financial institution, 

1. if that person reasonably believes that the debt claim will not be satisfied 
2. has taken reasonable steps in pursuing the debt claim and 
3. has written off the debt claims as a bad-debt

E. if that person uses trading stock, a depreciable asset, a capital asset of a business, or an investment asset in a way that changes the original characterization of that asset.