The Ghana Revenue Authority (GRA) is proposing to extend the Modified Taxation Scheme (MTS) to qualifying small limited liability companies with annual turnover of up to GH¢750,000.
The proposed reform is aimed at making the tax system more responsive to the realities of small businesses and reducing the compliance burden on enterprises that choose to formalise their operations.
Under the proposal, eligible businesses operating as individuals, sole proprietorships, partnerships or limited liability companies would be able to benefit from the simplified tax regime, instead of being subjected to compliance requirements designed for larger corporate entities.
The Commissioner-General of the GRA, Anthony Kwasi Sarpong, announced the policy direction in a speech delivered on his behalf by his Technical Adviser and Chairperson of the MTS Committee, Elsie Appau-Klu, at an MTS stakeholder workshop in Accra.
The workshop was organised by Eban Capital, the Association of Small Scale Industries (ASSI), the Microfinance and Small Loans Centre (MASLOC), the Youth Employment Agency (YEA) and the GRA.
Ms Appau-Klu said the proposed expansion had become necessary because many young people and women were being encouraged to formally register their businesses as limited liability companies, even when their operations remained relatively small.
Under the current application of the Income Tax Act, the MTS has largely been applied to individuals and sole proprietors. Read More
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