Withholding Tax Administration – Page 2

PT – Nov 2024 – L2 – Q5b – Withholding Tax & VAT Calculation

Compute VAT and direct tax withheld on a taxable supply of medical consumables to a tax withholding agent.

Question

Charley Chemist LTD made a taxable supply of medical consumables amounting to GH¢750,000 exclusive of VAT and levies on 23 November 2023 to the University of Ghana Medical Centre. The University of Ghana Medical Centre is a withholding tax agent for both VAT withholding and Direct Tax withholding.

Required:
i) Compute the amount of VAT withheld by the University of Ghana Medical Center.
ii) Compute the amount of direct tax withheld by the University of Ghana Medical Centre.

Answer

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Tags: Direct Tax, Medical Supplies, Tax Agent, Tax Compliance, Tax computation, Tax deduction, VAT, VAT Withholding, Withholding Tax
Level: Level 2

Topic: Value-Added Tax (VAT), Customs, and Excise Duties, Withholding Tax Administration
Series: Nov 2024

PT – April 2022 – L2 – Q5a – Withholding Tax Administration

Explain four exemptions from withholding tax according to the Income Tax Act, 2015 (Act 896).

Question

Although the scope of withholding tax covers employment, business, and investment income, not every income is subject to withholding tax in accordance with the Income Tax Act, 2015 (Act 896) as amended.

Required:
Explain FOUR (4) of these withholding tax exemptions.
(10 marks)

Answer

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Tags: Exemptions, Income Tax, Tax Administration, Withholding Tax

Topic: Exemptions, Withholding Tax Administration
Series: APR 2022

PT – Nov 2023 – L2 – Q5b – Value-Added Tax (VAT), Customs, and Excise Duties

Calculate the withholding tax payable for a contract including various levies and VAT.

Question

The cost of iron rods supplied by Akinto Steel Works Ltd to Oputu Construction Ltd is worth GH¢300,000 (inclusive of National Health Insurance Levy, Ghana Education Trust Fund Levy, COVID-19 Health Recovery Levy, and Value Added Tax).

Required:
Determine the Withholding Tax payable in respect of the contract for supplies. (5 marks)

Answer

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Tags: Contract for Supplies, COVID-19 Health Levy, Levies, National Health Insurance Levy, VAT, Withholding Tax
Level: Level 2

Topic: Withholding Tax Administration
Series: NOV 2023

PT – Nov 2019 – L2 – Q2c – Withholding Tax Administration

Calculates withholding tax due from various contracts awarded to KPP Books & Stationery Ltd. by Ghana Water Company.

Question

c) Below are the various contracts awarded to KPP Books and Stationery Limited by the Ghana Water Company for the 2018 year of assessment:

1st contract: supply of stationery costing GH¢1,000 in January 2018.
2nd contract: supply of Station Diaries costing GH¢900 in March 2018.
3rd contract: supply of additional stationery costing GH¢900 on August 16, 2018.
Required:
What amount of withholding tax is due to the Ghana Revenue Authority in the year 2018 from Ghana Water Company? (5 marks)

Answer

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Tags: Contracts, Tax deductions, Threshold, Withholding Tax
Level: Level 2

Topic: Withholding Tax Administration
Series: NOV 2019

PT – May 2020 – L2 – Q2c – Value-Added Tax (VAT),

Explains the purpose of implementing Withholding VAT in Ghana.

Question

The introduction of Withholding Value Added Tax was widely celebrated by tax administrators and tax practitioners as it is believed the benefits to be raked by the Ghana Revenue Authority would be enormous.

Required:
What purpose does Withholding Value Added Tax seek to achieve?
(2 marks)

Answer

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Tags: Compliance, Tax Administration, Withholding VAT
Level: Level 2

Topic: Withholding Tax Administration
Series: MAY 2020

PT – March 2023 – L2 – Q5b – Withholding Tax Administration

State the payments which are exempt from withholding tax.

Question

A resident person shall withhold tax on payments of any dividends, interests, rent, royalties, natural resources, and payments with a source in the country.

Required:

State FOUR (4) payments to which withholding tax does not apply.
(4 marks)

Answer

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Tags: Exemptions, Income Tax, Withholding Tax
Level: Level 2

Topic: Withholding Tax Administration
Series: MAR 2023

PT – July 2023 – L2 – Q5a – Withholding Tax Administration

Calculate taxes and determine whether each is final based on various transactions provided.

Question

The following information is available to you as a tax consultant:

Description	Amount (GH¢)
Dividend paid to resident person	100,000
Dividend paid to non-resident person	200,000
Payment of goods to resident person	300,000
Payment of goods to non-resident person	400,000
Rent – residential property	150,000
Rent – commercial property	300,000
Natural Resource Payment	1,000,000
Management and Technical Service fees to non-resident	400,000
Interest paid to resident financial institution	20,000,000
Royalty paid to non-resident person	400,000

Required: Compute taxes from the above information and indicate whether the tax is final or not final.

Answer

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Tags: Dividend, Final Tax, Goods payment, Non-resident, Rent, Withholding Tax
Level: Level 2

Topic: Withholding Tax Administration
Series: JULY 2023

PT – May 2021 – L2 – Q5a – Withholding Tax Administration

Explain the withholding tax rates and treatment for rental income for residential and non-residential premises.

Question

A resident person who makes a payment to another resident person in respect of the rental of residential or non-residential premises is required to withhold tax in accordance with the Income Tax Act, 2015 (Act 896) as amended.

Required:
i) State the taxation principle applicable to rental income and the relevant rates. (5 marks)
ii) Given i) above, how will you treat this transaction, where a resident person makes a payment to another resident person conducting a business of sale or renting of residential or non-residential premises?

Answer

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Tags: Non-Residential Premises, Rental Income, Residential, Withholding Tax
Level: Level 2

Topic: Withholding Tax Administration
Series: MAY 2021

PT – Dec 2023 – L2 – Q5b – Withholding Tax Administration

Explanation of the tax credit certificate and its significance in tax administration.

Question

Explain tax credit certificate and its importance in/to tax administration. (5 marks)

Answer

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Tags: Income Tax Act, Tax Administration, Tax Credit Certificate, Tax law, Withholding Tax
Level: Level 2

Topic: Withholding Tax Administration
Series: DEC 2023

PT – Dec 2023 – L2 – Q5a – Withholding Tax Administration

Explanation of the difference between final withholding tax and withholding tax on account with examples.

Question

The provisions of the Income Tax Act, 2015 (Act 896) require a resident person who pays an amount for works or the supply of goods and services to another resident or non-resident person with a source in Ghana to withhold tax from the payment at the rate specified under Paragraph 8 of the First Schedule of the Act and pay same to the Commissioner-General.

Required:
Explain with examples the following:
i) Final withholding tax. (2.5 marks)
ii) Withholding tax on account. (2.5 marks)

Answer

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Tags: Final Tax, Income Tax Act, Tax law, Tax on Account, Withholding Tax
Level: Level 2

Topic: Withholding Tax Administration
Series: DEC 2023

PT – Aug 2022 – L2 – Q5b – Withholding Tax Administration

Explain two circumstances where withholding taxes are exempt.

Question

Explain TWO (2) circumstances under which withholding taxes are exempt.

Answer

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Tags: Corporate Tax, Tax Exemptions, Tax law, Withholding Tax
Level: Level 2

Topic: Withholding Tax Administration
Series: AUG 2022

PT – Nov 2020 – L2 – Q5d – Withholding Tax Administration

Outline the main benefits and qualifying conditions of the 2nd Tier Mandatory Pension Scheme.

Question

What are the main benefits and qualifying conditions under the 2nd Tier Mandatory Occupational/Work-Based Pension Scheme? (5 marks)

Answer

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Tags: Mandatory Occupational Scheme, Pension Scheme, Retirement Benefits
Level: Level 2

Topic: Withholding Tax Administration
Series: NOV 2020

PT – Nov 2020 – L2 – Q5c – Withholding Tax Administration

Compute withholding tax on interest payments received by a resident individual.

Question

Mike Kotex, a resident individual, received interest from the following:

Source	Amount (GH¢)
Resident Financial Institution	10,000
Pearl Micro-Finance	9,000
ABC Ltd – Oil Marketing Company	8,000

Required:
Compute the taxes payable on the payments to Mike Kotex and comment on the payment of interest by ABC Ltd to Mike Kotex. (4 marks)

Answer

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Tags: Financial Institutions, Interest, Resident Individual, Withholding Tax
Level: Level 2

Topic: Withholding Tax Administration
Series: NOV 2020

PT – Nov 2021 – L2 – Q5a – Withholding Tax Administration

State the merits and demerits of the withholding tax regime in Ghana

Question

Withholding tax is deducted at source by an authorised agent and accounted later to the Commissioner-General of Ghana Revenue Authority.

Required:
State TWO (2) merits and TWO (2) demerits of the withholding tax regime.

Answer

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Tags: Government Revenue, Tax Collection, Tax Compliance, Taxpayer Burden, Withholding Tax
Level: Level 2

Topic: Withholding Tax Administration
Series: NOV 2021

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)

Answer

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

Topic: Withholding Tax Administration

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PT – Nov 2024 – L2 – Q5b – Withholding Tax & VAT Calculation

Compute VAT and direct tax withheld on a taxable supply of medical consumables to a tax withholding agent.

You're reporting an error for "PT – Nov 2024 – L2 – Q5b – Withholding Tax & VAT Calculation"

PT – April 2022 – L2 – Q5a – Withholding Tax Administration

Explain four exemptions from withholding tax according to the Income Tax Act, 2015 (Act 896).

You're reporting an error for "PT – April 2022 – L2 – Q5a – Withholding Tax Administration"

PT – Nov 2023 – L2 – Q5b – Value-Added Tax (VAT), Customs, and Excise Duties

Calculate the withholding tax payable for a contract including various levies and VAT.

You're reporting an error for "PT – Nov 2023 – L2 – Q5b – Value-Added Tax (VAT), Customs, and Excise Duties"

PT – Nov 2019 – L2 – Q2c – Withholding Tax Administration

Calculates withholding tax due from various contracts awarded to KPP Books & Stationery Ltd. by Ghana Water Company.

You're reporting an error for "PT – Nov 2019 – L2 – Q2c – Withholding Tax Administration"

PT – May 2020 – L2 – Q2c – Value-Added Tax (VAT),

Explains the purpose of implementing Withholding VAT in Ghana.

You're reporting an error for "PT – May 2020 – L2 – Q2c – Value-Added Tax (VAT),"

PT – March 2023 – L2 – Q5b – Withholding Tax Administration

State the payments which are exempt from withholding tax.

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PT – July 2023 – L2 – Q5a – Withholding Tax Administration

Calculate taxes and determine whether each is final based on various transactions provided.

You're reporting an error for "PT – July 2023 – L2 – Q5a – Withholding Tax Administration"

PT – May 2021 – L2 – Q5a – Withholding Tax Administration

Explain the withholding tax rates and treatment for rental income for residential and non-residential premises.

You're reporting an error for "PT – May 2021 – L2 – Q5a – Withholding Tax Administration"

PT – Dec 2023 – L2 – Q5b – Withholding Tax Administration

Explanation of the tax credit certificate and its significance in tax administration.

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PT – Dec 2023 – L2 – Q5a – Withholding Tax Administration

Explanation of the difference between final withholding tax and withholding tax on account with examples.

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PT – Aug 2022 – L2 – Q5b – Withholding Tax Administration

Explain two circumstances where withholding taxes are exempt.

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PT – Nov 2020 – L2 – Q5d – Withholding Tax Administration

Outline the main benefits and qualifying conditions of the 2nd Tier Mandatory Pension Scheme.

You're reporting an error for "PT – Nov 2020 – L2 – Q5d – Withholding Tax Administration"

PT – Nov 2020 – L2 – Q5c – Withholding Tax Administration

Compute withholding tax on interest payments received by a resident individual.

You're reporting an error for "PT – Nov 2020 – L2 – Q5c – Withholding Tax Administration"

PT – Nov 2021 – L2 – Q5a – Withholding Tax Administration

State the merits and demerits of the withholding tax regime in Ghana

You're reporting an error for "PT – Nov 2021 – L2 – Q5a – Withholding Tax Administration"

PT – Nov 2020 – L2 – Q5b – Withholding Tax Administration

Compute withholding taxes on goods, services, and works for resident companies.

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