Dr. Abdallah Ali-Nakyea, a Senior Lecturer at the University of Ghana School of Law (UGSoL) and a tax expert has been sharing nuggets of advice to Small and Medium Scale Enterprises (SMEs) at the 2023 Vodafone Ghana Business Runway event urging the SMEs to make it a point to fully understand the tax laws, especially tax laws pertaining to their businesses.
Dr. Ali-Nakyea observed that navigating the tax maze in Ghana can be worrisome for both individuals and organisations due to low knowledge and understanding of the country’s existing tax laws. As such, for growing SMEs in Ghana, understanding these tax laws is a necessity to running a sustainable business.
“Navigating the maze as an SME requires your understanding of the following tax laws; Income Tax Act, 2015 (Act 896), Income Tax Regulation, 2016 (L.I. 2244), Value Added Tax Act, 2013 (Act 870), Value Added Tax Regulations, 2016 (L.I. 2243), Revenue Administration Act, 2016 (Act 915) and the Customs Act, 2015 (Act 891), with their attendant amendments. These taxes may affect you directly or indirectly as an SME, and understanding them would help you gain a greater advantage in the tax system,” he noted.
On the basis of taxable payments to the Ghana Revenue Authority (GRA), Dr. Ali-Nakyea stated that a business entity determines the amount of taxes to be paid to the GRA for their financial year based on their chargeable income. By claiming all expenses, reliefs and incentives, businesses are able to reduce or eliminate their taxes entirely while freeing them from penalty payments.
“Tax planning is essential for SMEs, and it is simply a process of looking at various tax options in order to determine when, whether and how to conduct business and personal transactions so that taxes are eliminated or reduced and that is what I love doing. It allows you to arrange your tax affairs in accordance with the tax law, in order to pay the minimum tax possible and at your convenience which directly or indirectly improves your business operation. This process is allowed under the tax laws of Ghana, so no, it is not a criminal offence,” he shared.
The Vodafone Ghana Business Runway is an event designed to equip growing SMEs in Ghana with strategies to navigate the challenging business landscape and achieve sustainable growth. The Telco, Vodafone, dedicated the month of September to championing the cause of SMEs.
The Vodafone Ghana Business Runway was held under the theme “Good to Great with Vodafone: Innovate, Comply, and Expand.” The gathering brought together some of Ghana’s top SME leaders, partners, and stakeholders and was held at the Mӧvenpick Ambassador Hotel in Accra, on September 29, 2023