• About Us
  • Contact Us
Account
GTB
  • Home
  • News
  • Premium
  • Business
  • Personal Finance
  • Lifestyle
    • Travel
    • Health
    • Retail/Fashion
  • Podcast
    • Business Chat
    • Retiring Richly
    • Sika Nkommo
  • Videos
  • Analysis/Features
No Result
View All Result
  • Home
  • News
  • Premium
  • Business
  • Personal Finance
  • Lifestyle
    • Travel
    • Health
    • Retail/Fashion
  • Podcast
    • Business Chat
    • Retiring Richly
    • Sika Nkommo
  • Videos
  • Analysis/Features
No Result
View All Result
Account
Ghana Talks Business
No Result
View All Result

BRIEF: Are you aware of the tax consequence of a Staff Loan (Soft loan) ?

04/07/2016
Reading Time: 2 mins read
0
SHARES
Share on FacebookShare on TwitterShare on WhatsApp

Well the internal revenue Act 2015 (Act 896) has made it mandatory for employers who gives staff loan / company loans to their employees to charge tax on a deemed benefit on such loans, except where the follow rules / conditions applies

The term of the loan does not exceed 12 months

The aggregate amount of the loan and similar loan outstanding at any time during the previous months does not exceed three months of the employees basic salary.

The loan is from an employer to an employee.

 If the above conditions are NOT met, an amount is taxed in the hands of the employee as follows:

A quarter of the amount by which

a. if interest were payable under the loan at the statutory rate for the year of assessment, the interest that would have been paid by the payee during the of assessment in which the payment is made, exceeds

b. the interest paid by the payee during the year of assessment under the loan, if any.

Amount= ¼ X (BOG re-discount interest – any interest paid by the employee)

 This provision apply also to manager of an entity receiving such benefits. (A manager is defined under the act to include a Director, officer, member, partner or any other person who participates in making senior management decisions on behalf of an entity).

 

Author: Gloria Boye-Doku (ACCA,ICAG)

Tax Manager at Deloitte & Touche

 gboyedoku@Deloitte.com.gh

Previous Post

‘Crops’ or ‘carats’? Interaction between gold mining and cocoa production in Ghana

Next Post

How to build a successful start-up, according to Reid Hoffman

Related Posts

MostBet Registration Bangladesh

29/12/2023

28/12/2023

Праздничные подарки от 1 win насладитесь Новым Годом с дополнительными выгодами!

22/12/2023

How does the sizing of sp5der clothing run

22/12/2023

Azərbaycanda rəsmi sayt

20/12/2023

Mostbet Casino Azərbaycan üçün imkanlarını təqdim edir

20/12/2023
Next Post

How to build a successful start-up, according to Reid Hoffman

The stars at MOBEX 2016- blazing the trail in the fintech industry in Ghana

  • About Us
  • Disclaimer
  • Privacy Policy
  • Advertising
  • Contact Us

© 2023 Ghana Talks Business

No Result
View All Result
  • Home
  • News
  • Premium
  • Business
  • Personal Finance
  • Lifestyle
    • Travel
    • Health
    • Retail/Fashion
  • Podcast
    • Business Chat
    • Retiring Richly
    • Sika Nkommo
  • Videos
  • Analysis/Features
  • Login

© 2023 Ghana Talks Business

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In