At a public symposium, a tax administrator made a statement to the effect that withholding taxes must be exacted from any payment made to persons around the world for goods, works and services.
Required:
Evaluate the extent to which this statement is true in the light of the tax provisions of the Income Tax Act, 2015 (Act 896) as amended. (4 marks)
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An authorised agent is required to withhold tax from payment to a withholdee. The withholdee could be resident or non-resident. In the case of the resident, there is some situation where there is an exemption. In the case of a non-resident, withholding is only relevant when the person is trading in Ghana. In the case of trading with Ghana, withholding taxes do not apply to such transactions.