Income Tax (Amendment) (No. 2) Act, 2017 Act 956

INCOME TAX (AMENDMENT) (NO. 2) ACT, 2017 (ACT 956)
ARRANGMENT OF SECTIONS
Section
1. Section 6 of Act 896 amended
2. Section 7 of Act 896 amended
3. First Schedule to Act 896 amended
4. Sixth Schedule to Act 896 amended
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NS
Section
1. Section 6 of Act 896 amended
2. Section 7 of Act 896 amended
3. First Schedule to Act 896 amended
4. Sixth Schedule to Act 896 amended
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ACT 956
REPUBLIC OF GHANA
THE NINE HUNDRED AND FIFTY-SIXTH
ACT
OF THE PARLIAMENT OF THE REPUBLIC OF GHANA
ENTITLED
INCOME TAX (AMENDMENT) (NO. 2) ACT, 2017
AN ACT to amend the Income Tax Act, 2015 (Act 896) to abolish the tax on lotto winnings,
provide for accelerated capital allowance for manufacturers and importers importing stamping
machines for the implementation of the excise tax stamp policy, provide tax holding for young
entrepreneurs and to provide for related matters. DATE OF ASSENT: 29th December, 2017. PASSED by Parliament and assented to by the President:
Section 1—Section 6 of Act 896 amended
The Income Tax Act, 2015 (Act 896) referred to in this Act as the "principal enactment" is
amended in section 6 by the deletion of subparagraph (iv) of paragraph (a) of subsection (2). Section 2—Section 7 of Act 896 amended
The principal enactment is amended in subsection (1) of section 7
(a) by the deletion of "and" after paragraph (s);
(b) by the insertion after paragraph (t) of
"(u) the income of an approved unit trust scheme or mutual fund ; and
(v) the income of an approved Real Estate Investment Trust.".

r paragraph (t) of
"(u) the income of an approved unit trust scheme or mutual fund ; and
(v) the income of an approved Real Estate Investment Trust.".

Section 3—First Schedule to Act 896 amended
The principal enactment is amended in the First Schedule
(a) by the substitution for subparagraph (1) of paragraph 1 of
2

Schedule to Act 896 amended
The principal enactment is amended in the First Schedule
(a) by the substitution for subparagraph (1) of paragraph 1 of
2

NO. CHARGEABLE INCOME RATE OF TAX
1 First GHS 3,132 NIL
2 Next GHS 840 5 percent
3 Next GHS 1,200 10 percent
4 Next GHS 33,720 17.5 percent
5 Exceeding GHS 38,892 25 percent
(b) by the substitution for subparagraph (6A) of paragraph 3 of
"(6A) The income tax rate applicable to the chargeable income of a business referred to in
subparagraphs (1), (2), and (3) of paragraph 1 of the Sixth Schedule for the next five year period
after the temporary concession period is :" ; and
(c) by the deletion of paragraph 8(1)(b)(viii). Section 4—Sixth Schedule to Act 896 amended
The principal enactment is amended in the Sixth Schedule
(a ) by the substitution for paragraph 6 of
6. "Young entrepreneurs
(1) The income of a young entrepreneur from the business of manufacturing, information and
communications technology, agro processing, energy production, waste processing, tourism
and creative arts, horticulture and medicinal plants shall be exempt from tax for a period of five
years. (2) The tax rate applicable for the five-year period after the initial concession period shall be
as follows:
NO. LOCATION TAX RATE
1. Accra and Tema 15%
2.

e tax rate applicable for the five-year period after the initial concession period shall be
as follows:
NO. LOCATION TAX RATE
1. Accra and Tema 15%
2.

Other regional capitals outside the three Northern regions 12.5%
3. Outside other regional capitals 10%
4. The three Northern Regions 5%
(3) The person may carry forward an unrelieved loss for a period of five basis periods. (4) For the purpose of this paragraph, "young entrepreneur" means an entrepreneur who is not
more than thirty-five years old."
(b) by the insertion after paragraph 9 of
10. "Importers and manufacturers of excisable products
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An importer or manufacturer of excisable goods shall be granted accelerated depreciation over
a period of two years on affixing machinery and equipment imported for the implementation
of the Excise Tax Stamp Policy as follows:
NO. YEAR PERCENTAGE
1. First year 50% of initial value
2. Second year 50% of initial value
11. Private universities
Privately-owned universities shall be exempt from tax when they plough back a hundred
percent of their profit-after-tax into the business."
Date of Gazette Notification: 29th December, 2017.
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