This Act has a gazette date of 3 April 2023 and is expected to take effect from this date or as specified under any further guidelines issued by the Ghana Revenue Authority (GRA).
Act 1095 widens the scope of the existing National Fiscal Stabilisation Levy (NFSL) by introducing the Growth and Sustainability Levy (GSL) to replace the NFSL.
GSL applies to an entity’s profits before tax or the production value of specified companies for the 2023-2025 years of assessment. It applies to all entities, contrary to the NFSL which was only applicable to specific industries or sectors.
The GSL has been classified into three (3) main categories as stated below:
Category A – 5% of profit before tax
- Non- Bank Financial Institutions
- Insurance Companies
- Telecommunications companies liable to collect and pay the Communications Service Tax Act, 2008 (Act 764)
- Inspection and valuation companies
- Companies providing mining support services
- Bulk Oil Distributors
- Oil Marketing Companies
- Communication Tower Operators
- Companies providing upstream petroleum services
- Companies and institutions registered by the Securities and Exchange Commission
- Specialized Deposit- Taking Institutions
- Electronic Money Issuers
- Shipping lines, maritime and airport terminals.
category b – 1% of gross production
Mining companies and upstream oil and gas companies
category c – 2.5% of profit before tax
All other entities not falling within Category A or Category B
GSL paid is not allowable as a deduction for CIT purposes. Persons subject to GSL are required to file a return as determined by the Commissioner-General disclosing the estimated GSL payable. Payment must be made on a quarterly basis on 31 March, 30 June, 30 September, and 31 December for persons with 31 December financial year end.
The NFSL continues to apply for the years of assessment commencing prior to the date on which Act 1095 comes into force. Therefore, entities with a financial year end prior to the effective date of Act 1095 are required to comply with the provisions of Act 862 for financial years ending in 2023. Any right or liability or obligation in existence immediately before the repeal of Act 862 remains in existence until exercised or terminated.