Following parliamentary approval of the Government’s budget statement for 2011, the Government of Ghana has made some amendments to Ghana’s tax laws. Among the amendments are the following:
Review of the tax holiday period for real estate companies:
Previously, companies engaged in the construction of residential premises for sale or letting were exempted from corporate income tax during their fi rst 5 years of operation. This exemption has now been restricted and only companies engaged in the construction of low cost affordable residential premises for sale or letting will qualify. Such companies are required to be issued with certifi cate by the Minister responsible for Works and Housing as proof of their eligibility.
Extension of validity period for National Fiscal Stabilisation Levy (“NFSL”):
The NFSL is levied at 5 % on the profi t before tax of banks (excluding rural and community banks), non-bank fi nancial institutions, insurance companies, companies liable to collect and pay the communication service tax, mining companies, and breweries. The NFSL was due to expire by the end of 2010 but has been extended to continue in 2011.