Ghana Revenue Authority says incomes of permanent expatriate staff of oil companies taxable

The Ghana Revenue Authority (GRA) said on Tuesday that incomes of permanent expatriate staff of oil companies in the country are taxable under the law.

In a statement signed by Mr Kwasi Bobie-Ansah, Acting Head of Public relations and Tax Education, GRA, said Article 12.8 of the GNPC Model Petroleum Agreement which governs the expatriate staff of the oil companies, including those on short term, that is for 28 days, states as follows:

“The Ghana Income Tax law applicable generally to individuals who are not employed in the petroleum industry shall apply in the same fashion and at the same rates to employees of Contractor, its Affiliates and its Subcontractors: provided, however, that Foreign National Employees of Contractor, its Affiliates and its Subcontractors shall be exempt from the income tax and withholding tax liabilities if they are resident in Ghana for thirty (30) days or less in any Calendar Year.”

The GRA said: “It is clear from the above law that the incomes of expatriate staff who stay up to 30 days cannot be subjected to tax.

“However, the incomes of permanent expatriate staff of oil companies in the country are taxed accordingly.”

The GRA said the PNDCL 188 which deals with the taxation of expatiate employees also states: “unless, and to the extent that Petroleum Agreement provides in respect of any expatriate employee employed by a Contractor or Sub-Contractor carrying on exclusively petroleum operations, the gains or profits of such employee shall be liable to income tax and the withholding of tax under the laws of Ghana.”

A story in the media has indicated that the government has been losing huge sums of money from tax evasion by some expatiate workers.

Source: GNA