Rent Tax To Be Enforced This Year
The Ghana Revenue Authority (GRA) recently announced its intention to implement rent tax, the amount paid on rental income obtained from letting or leasing property, by the end of the year. Rent tax rates are 8% for residential premises and 15% for commercial premises and must be paid within 30 days after the income is received by landlords or property owners. Failure to timely pay the rent tax attracts an interest of 125% of the statutory rate, compounded monthly.
To streamline the implementation, GRA has introduced a rent tax mobile application with relevant data; once a name is searched, the application provides a corresponding location as well as an indication of whether the property is owner-occupied or rented.
Landlords and property owners are therefore urged to comply with their rent tax obligations to avoid penalty and to retain receipts of payment of their rent tax for inspection by GRA officers. Consumers may expect increased rent as landlords seek to minimize their losses from the tax.
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