The Ghana Revenue Authority (GRA) has called on landlords in the country to pay eight per cent income tax on their residential property as withholding tax.
Principle revenue officers at GRA made this known on Asempa FM’s Ekosii Sen show Tuesday in a one-on-one interview.
According to them, if the property is a commercial one, then a landlord is supposed to pay 15 per cent of the rent received from tenants.
“When you build and rent it, as a landlord, you are supposed to pay eight per cent on residential property and 15 per cent on commercial property. This is not the same as property rate as that one goes to the district assembly and the income tax comes directly to GRA,” they said.
The officers said this is not a new law as it is already in the system but the compliance has become a challenge and so it is important that landlords comply with this directive which according to them is backed by law.
ALSO READ:
- Elvis Kwashie, the man who asked for a miracle but didn’t get it
- Old video shows policeman involved in bullion van robbery won overall best drill in police training school
- I charge GH¢650 for 1 haircut – Ghanaian female barber
They said the law gives power to the tenant to deduct the income tax even before paying their rent, adding that the landlords can be appointed to do the collections but there may be hitches since most of the landlords do not pay.
The officers said the GRA has instituted a committee to collaborate with the district assembly on the way forward as far as the rent tax collection is concerned.
They said the district assembly has data of the property and therefore collaboration with them is the way to go.
“Our staff had actually started going round to check if landlords have paid and if they have not paid, then we may process you because we realised that they are making money and so there is the need to pay income tax,” they added.