July 1, 2022

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E-levy Exemptions: 6 occasions the GRA can’t cost you E-levy

5 min read

This text shouldn’t be right here to defend or make sense of the E-levy as a result of I’ve but to come back to phrases with it.

Nevertheless, I imagine that because you and I can’t do something in the mean time however await our leaders to implement this coverage correctly, so we don’t really feel we’re being taxed from a number of sources.

Let’s contemplate reviewing the E-levy from the standpoint of what it doesn’t cowl.

For the primary time for the reason that new tax coverage was handed, I made a decision to examine it as a result of it was trending on Twitter.

I bought hooked the second I learn the definition of what the E-levy is on the GRA web site. In keeping with GRA, the E-levy is a Levy on all digital transfers of cash aside from these excluded by regulation.

Maintain it; I can’t bore you with what’s excluded by regulation; nonetheless, I will probably be trying on the exemptions offered by regulation on all digital transfers of cash ( as a result of that is the place the confusion is).

Although the regulation states all, it isn’t total ALL, so maintain your peace.

As I progressively transfer in direction of itemizing what transactions usually are not lined by the E-levy, let me first blow your thoughts with what I found on E-levy exemptions.

Table of Contents

E-levy Exemptions

In keeping with the Legislation as interpreted by GRA, E-levy gained’t apply to the next situations:

There may be extra to this, however since I’m not a tax knowledgeable, I’m solely specializing in what applies to a person and never an organisation; please be aware.

1. Cumulative switch of GHS 100 per day made by the identical individual utilizing cellular cash

    It is possible for you to to ship as much as GHS100 a day with out paying the levy.

2. Switch between accounts owned by the identical individual: 

If you’re sending cash to your individual account, you’ll not be charged the E-Levy offered your financial institution or cellular cash accounts are linked together with your Ghana Card PIN.

The important thing level right here is to verify all of your accounts (Financial institution Accounts, Cell Wallets, Funding Accounts, and many others) are linked to your Ghana Card. In case you don’t have the Ghana Card, click on right here.

For instance, You gained’t be charged E-levy if:

  1. You’re transferring out of your MTN pockets to my Vodafone Money pockets or
  2. You’re transferring from a GT checking account to a Constancy  checking account ( all in your identify linked to your Ghana Card) or
  3. You make an inside switch out of your CalBank financial savings account to your present or
  4. You’re transferring from an funding account is not going to entice the levy as a result of you’ve linked all of your accounts together with your Ghana Card.

3. Transfers for the fee of taxes, charges, and expenses

Any fee of taxes, charges or expenses made utilizing the Ghana.gov platform or different designated Authorities of Ghana fee techniques is not going to entice the levy.

It will likely be humorous to be taxed for eager to pay your taxes. Our chief actually bought this one! LOL

4. Digital Clearing of Cheques

Clearing of cheques by banks and Specialised Deposit-Taking Establishments resembling Financial savings and Loans corporations, and many others. is not going to entice the levy.

5. Specified Service provider Funds

Transfers made via an digital fee service (cellular cash, financial institution software, FinTech platform (e.g. Korba, expressPay, Hubtel, and many others.), and many others.) to a business institution which is registered with the Ghana Income Authority for the needs of Revenue Tax or Worth Added Tax are excluded. 

To my tech-savvy colleagues, for you to not be charged for E-levy make sure that no matter digital fee service you might be utilizing is registered with GRA. No backdoor apps to switch cash anymore!

If you’re charged E-levy for utilizing any digital fee service in Ghana, that ought to inform you that your service offered is usually are not tax compliant, and as a very good citizen, you want to report them to GRA. Click on right here to report.

6. Transfers amongst principal, agent, and master-agent accounts

To keep away from charging the Levy a number of occasions, transfers amongst principal, agent, and grasp agent are excluded from the levy.

In easy language, the GRA gained’t cost E-levy on transactions of main stakeholders like Cell Cash Brokers, Fintech Corporations, Monetary Establishments, and many others.

Does this excite you?

Now that you realize the exemptions that exist for E-levy. Let’s reply some particular questions utilizing the information we’ve got found above with regards to GRA’s web site.

Are utility and airtime funds topic to the E-Levy?

No, as soon as the fee is a specialised service provider fee (E.g. Fintech apps like Korba, ExpressPay, Hubtel, Slydepay, and many others.) or one made via a government-designated system (ECG, GWCL, Ghana.gov, and many others.), the switch quantity is not going to entice the levy.

Are international or inward remittances topic to the levy?

No, remittances are excluded from the levy.

Will Level-Of-Sale (POS) transactions entice the E-Levy?

No, so long as the POS transaction is a fee to a business institution registered with the GRA for earnings tax or VAT functions, The Levy is not going to apply.

Will Money-In and Money-Out for Cell Cash entice the E-Levy?

No, each Money-in and Money-out usually are not topic to the E-Levy.

If a personal college is paying its academics and informal employees through cellular cash, will the E-Levy apply?

Transfers from the varsity’s company cellular cash service provider pockets to academics and informal employees through cellular cash will entice the levy.

Nevertheless, the varsity is allowed to say the levy as an allowable expense in its earnings assertion.

Will cellular cash pockets balances entice the E-Levy?

No, cellular cash pockets balances is not going to entice the levy. The levy applies solely when there may be an digital switch out of your cellular cash pockets.

Will cellular cash service provider (agent) account transfers entice the E-Levy?

No. Transfers amongst principals, grasp brokers and brokers is not going to entice the E-Levy.

I hope you discovered this text useful. Please keep in mind to drop your feedback.