Transfer Pricing Regulations, 2020 (L.I. 2412)
A new Transfer Pricing (TP) regulations have been enacted to simplify the administration of the law, reduce compliance burden for some eligible taxpayers, and provide clarity on key technical terms. The new TP rules entered into force in November, 2020. The intention of the new TP rules is also to incorporate some of the significant action plans emanating from the work of the Organisation for Economic Co-operation and Development (OECD) on Based Erosion and Profit Shifting (BEPS) schemes by Multinational Enterprises (MNEs). Some of the key compliance requirements in the regulations include:
- the submission of master and local files within four months from the end of the financial year;
- filing a TP return (now a standalone return) within four months from the end of the financial year (subject to the granting of a filing extension); and
- filing Country-by-Country report (CbCR) within 12 months from the end of the financial year (subject to certain conditions).
Revenue Administration (Amendment) Act, 2020 (Act 1029)
An independent Tax Appeals Board (Board) has been set up to address issues of persons who are dissatisfied with a tax decision of the Commissioner-General (CG). Such persons would first have to raise an objection with the CG and if dissatisfied with the decision, appeal to the Board within thirty days of the decision. If not satisfied with the decision of the Appeals Board such persons may proceed to the court.
The Act also eliminates the penalty on a taxpayer who voluntarily discloses a misstatement to the CG and promptly settles the additional tax liability. However, a taxpayer is exposed to the payment of interest associated with the late payment of additional taxes.
Communication Service Tax (Amendment) Act, 2020 (Act 1025)
The Parliament of Ghana through this Amendment Act reduced the Communication Service Tax (CST) from 9% to 5% effective 15 September 2020.