Are you planning to cease your tax residency in Ghana? Whether you're moving abroad for work, study, or personal reasons, it's crucial to understand the legal steps to end your tax residency status. Follow this comprehensive guide to ensure you complete the process correctly and avoid any future tax complications.
Step 1: Determine Eligibility
Before you initiate the process, confirm that you meet the criteria for ceasing tax residency in Ghana. Generally, you must plan to reside outside Ghana for at least 183 days within the tax year. Ensure you have documented evidence, such as visa approvals, employment contracts, or admission letters from educational institutions abroad.
Step 2: Notify the Ghana Revenue Authority (GRA)
Submit a formal notification to the Ghana Revenue Authority (GRA) indicating your intention to cease your tax residency. You must provide your tax identification number, the reason for cessation, and the date you plan to leave Ghana. Attach relevant documentation supporting your move.
Step 3: Settle Outstanding Taxes
Ensure all your tax liabilities are settled before you leave. This includes filing any pending tax returns and paying any outstanding taxes. Obtain a tax clearance certificate from the GRA as proof that you have settled all tax obligations.
Step 4: Update Personal and Financial Records
Notify relevant financial institutions, employers, and other pertinent bodies about your change in tax residency status. Ensure that your banking details, investment accounts, and employment records are updated to reflect your new residency status.
Step 5: Maintain Records
Keep comprehensive records of all correspondence and documentation related to your cessation of tax residency. This includes copies of your notification to the GRA, tax clearance certificate, and any other relevant documents. These records are vital in case of any future inquiries or audits.
Legal References
- Income Tax Act, 2015 (Act 896), Section 112
- Ghana Revenue Authority Guidelines
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