- 6 Marks
PT – Nov 2020 – L2 – Q5b – Withholding Tax Administration
Compute withholding taxes on goods, services, and works for resident companies.
Question
The following relates to payments by Manita Ltd, a company resident in Ghana, to another resident company. Both companies are not exempt from withholding taxes:
| Description | Amount (GH¢) |
|---|---|
| Goods | 3,000,000 |
| Services | 1,200,000 |
| Works | 2,000,000 |
Upon scrutiny of the company’s records, the following additional information emerged:
i) It came to light that the goods above include a dividend payment of 10%.
ii) The services above relate to 50% management and technical services and 50% consultancy services.
Required:
Compute the withholding taxes payable (if any) and state TWO (2) reasons for withholding tax imposition. (6 marks)
Find Related Questions by Tags, levels, etc.
- Tags: Dividends, Resident Company, Tax computation, Withholding Tax
- Level: Level 2
- Topic: Withholding Tax Administration
- Series: NOV 2020
Report an error