Head OfficeHead OfficeCustoms Head QuartersView More GP-GPS GA-144-3422 080800-900-110 GP-GPS GA-144-3422 +233 322029600 See TSC offices and Area offices
Integrity
Fairness
Service
File & Pay taxes

Capital Gains Tax

Professionalism| Innovation| Fairness
GRADomestic TaxTax TypesCapital Gains Tax

Capital Gains Tax

This is a tax on the profit or gains realized on the sale or disposal of an asset either than trading inventory.

What Constitutes a Gain and Loss

 

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.

Gains from Sale of Shares

The gain from the sale of the shares will be the difference between the sales proceeds and the cost at the time of purchase. The “capital gain” will be taxed at the highest marginal rate. An individual may opt for a rate of 15 percent.

Persons Liable to Pay the Tax

Any person who realizes a gain from the sale of real estate, property, stocks, bonds, precious metals, etc. is mandated by law to declare and pay capital gain tax. The tax is payable on valuable items or assets sold at a profit.

Rate of the Tax

Individuals and companies are charged different rates of the Capital Gain tax.

For Individuals, the gain is treated as an isolated transaction and therefore taxed at a rate of 15% of the net gains realized. For businesses, the Capital Gains are included in the business’ annual returns and taxed accordingly. 

Returns and Payment

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. 

Period

This is the month and year for which Capital Gains were made and taxes became due (e.g the period of Capital Gains Return for June 2019 should be completed as 06/2019).

Particulars of Ownership

This refers to the person disposing of the asset ie. – old owner; and the one acquiring the asset(s) i.e.- new owner. In both cases the Name, Ghanacard PIN, Occupation, Postal Address and Residential Addresses (including street name) and Telephone numbers of both the new and the old owner must be provided.

Particulars of Chargeable Asset

A description of the chargeable asset includes; 

  1. Description of the chargeable asset(s), and
  2. Locating address of the asset

Realisation of Asset

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.

 

Need Help ?

Please feel free to contact us for your Customs classifications and validation

×

Hello!

Click on the representative below to chat on WhatsApp or send us an email to info@gra.gov.gh

× How can we help you?