The Ghana Revenue Authority (GRA) has introduced a new tax regime aimed at easing the financial burden on creatives in the country. According to Vi
The Ghana Revenue Authority (GRA) has introduced a new tax regime aimed at easing the financial burden on creatives in the country.
According to Victor Yao Akogo, Chief Revenue Officer at GRA, the modified system will exempt some creatives from mandatory Value Added Tax (VAT) registration, providing relief to low-income earners in the industry.
Key Features Of The New Tax Regime
– Annual turnover up to GH₵20,000: 3% tax on turnover, no VAT registration required
– Annual turnover above GH₵200,000: VAT registration mandatory
The GRA emphasizes that VAT charged on entertainment events is collected on behalf of patrons, who are the actual consumers of the content.
Event organizers are required to pay the VAT component, regardless of whether shows are ticketed or not.
Benefits For Creatives
The new tax regime is expected to benefit creatives in various sectors, including music, film, fashion, and visual arts.
By exempting low-income earners from VAT registration, the GRA aims to reduce the financial burden on small-scale creatives and promote growth in the industry.
GRA’s Engagement
The GRA has been engaging with the creative community to educate them on the new tax regime and its implications.
The 7th edition of Joy FM’s Showbiz Roundtable, themed “GRA Vs. Creatives – Taxation and the Future of Ghana’s Creative & Digital Economy,” brought together industry stakeholders to discuss taxation and its impact on the creative industry.
Industry Response
Industry players, including Kojo Poku, Vice President of the Event and Meeting Professionals Association of Ghana, and Francis Doku, Chief Executive Officer of Maestro Africa Group, have welcomed the new tax regime, noting that it will help reduce the financial burden on creatives and promote growth in the industry.
By introducing a more flexible tax regime, the GRA aims to support the growth of Ghana’s creative industry while ensuring that tax obligations are met.
Creatives are advised to register their businesses with the GRA to access available tax reliefs and benefits.
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