Ghana tax: Government enacted temporary 5% levy payable on profits

The government of Ghana has enacted a temporary 5% levy payable on the profits before tax for 2009 and 2010.

According to a schedule of affected companies, the levy applies to banks (other than rural and community banks), nonbank financial institutions, insurance companies, communications companies that are liable to collect and pay the communications services tax, mining companies and breweries. The Minister of Finance, however, is authorized to amend the schedule of affected companies. Moreover, the levy will apply to targeted businesses regardless of any other provisions (e.g. tax holidays) and the tax may not be deducted in determining taxable income.

The levy became payable quarterly atthe end of September 2009. For purposes of collection, enforcement, refund and penalties, the levy is treated as if part of the Internal Revenue Act, 2000.