According to the Ghana Revenue Authority (GRA), ride-hailing drivers in Ghana using Uber, Bolt, Yango, and other platforms will face a new Value Income Tax (VIT) starting January 1, 2024. GRA announced the introduction of the VIT for ride-hailing vehicle owners, as outlined in Section 22 of Regulations 2016, LI 2244.
In a statement released on December 20, 2023, GRA announced that all commercial vehicle owners earning income from their operations, including ride-hailing owners, are required to pay income tax on a quarterly basis.
GRA has advised companies like Uber, Yango, and Bolt to promptly update their digital platforms to accommodate the newly implemented tax regulations.
In compliance with the forthcoming tax regulations, ride-hailing firms are mandated to obtain a digital VIT sticker, validate its authenticity with the GRA, and provide the authority with a quarterly list of all vehicles active on their platforms.
The GRA has urged ride-hailing companies like Uber, Yango, and Bolt to update their systems to incorporate this new tax requirement. According to the statement issued by the Authority, non-compliance with these regulations may lead to penalties for both drivers and ride-hailing companies.
In connection with this, all operators of ride-hailing vehicles in Ghana are required to undergo a single registration of their vehicles at any GRA office. This registration facilitates VIT payments through the shortcode *222#.
The GRA highlighted that under the amended Revenue Administration Act, 2016 (Act 915), specifically Sections 1, 33, and 35, the Commissioner General is empowered to issue written directives, mandate taxpayers to furnish information, or link their digital systems to the Commissioner General’s monitoring platform to determine accurate state taxes owed.
Acknowledging diverse levels of financial literacy, the GRA recommends workshops, online resources, and educational materials to enhance comprehension, ensuring benefits such as compliance assurance and clear communication. Ride-hailing companies, including Uber, Yango, and Bolt, are encouraged to actively participate in this educational effort for a smooth transition to the new taxation landscape.
The VIT involves quarterly income tax contributions, designed to enhance financial accountability within the sector and enhance the overall economy.
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