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Landlords And Landladies To Start Paying Taxes On Rent Soon – GRA

Landlords and landladies will be paying taxes on the rent advance they take from tenants soon, the Commissioner-General of the Ghana Revenue Authority (GRA), Rev. Ammishaddai Owusu-Amoah has revealed.

The Commissioner-General of the Ghana Revenue Authority (GRA), Rev. Ammishaddai Owusu-Amoah

According to the GRA boss, his outfit will begin implementing rent tax before the end of 2021.

The Commissioner opined that businesses liable to pay Rent Tax include businesses or individuals who receive income from letting or leasing a property and an agency that qualifies to withhold tax.

Speaking at the Ghana Financial Intermediation Awards on Friday, June 11, 2021, Rev. Owusu-Amoah hinted that the Rent Tax App with data of every Ghanaian will allow the authority to know if a property is owner-occupied or rented.

 

“For the good of everyone, we have introduced the Rent Tax App which has everyone’s data on it. If your name is searched the app will take us directly to your location and then when we get there we will be able to identify whether the property is owner-occupied or rented. This will not make it possible for anyone to hide from paying your taxes. If you have a property you are renting, start paying the rent tax. We should all be compliant with this new ideology. Currently, we have started implementing the app in the Accra, Kumasi, Tema areas,” he said.

 

“Failure to pay your tax on rent income by the due date will attract an interest of 125% of the statutory rate compounded monthly. Remember to make available copies of all receipts of payment of rent tax for inspection by officers of Ghana Revenue Authority (GRA),” the GRA Commissioner-General added.

Rent income accrues to someone as a result of letting or leasing a property to another person. The tax paid on rental income is referred to as Rent Tax. Rent Tax must be paid within 30 days after the rent income is received by landlords or property owners.

There are two rent tax rates: 8% for residential premises and 15% for non-residential premises. Payment of the rent tax can be made at the nearest Domestic Tax Revenue Division Office and at all banks.

 

 

Source: knustnews.com

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