The Ghana Revenue Authority (GRA) has announced plans to implement a tax on Ghanaians who earn foreign income, including content creators and digital workers using global platforms like YouTube, X, TikTok, Fiverr, and Upwork.
This tax is to address a revenue gap resulting from the Ministry of Finance’s suspension of the Value Added Tax (VAT) on electricity in February, which left a deficit of approximately GHC 1.8 billion ($134 million).
The new tax, set at 1.5%, will apply to Ghanaians who generate income from online content creation and remote work, and who also reside in the country for at least 183 days a year. GRA’s Commissioner General Julie Essiam noted that the initiative represents an expansion and enforcement of Ghana’s tax system, according to.
Essiam highlighted that the process will commence with the GRA dispatching letters to individual account holders, potentially before 2nd May, 2024. Additionally, she urged individuals to voluntarily report their foreign income status within three months in order to avoid paying extra interest on their earnings.
Ghana’s decision to tax foreign income and content creators has been explained as being part of the country’s efforts to address revenue shortfalls and ensure fiscal sustainability. However, it has sparked an uproar among Ghanaians, particularly content creators and digital workers, who may face additional financial burdens as a result of the new tax measure.
