The Ghana Revenue Authority (GRA) has confirmed key tax policy changes effective July 1, 2025, targeting revenue mobilization amid reduced international funding.
Acting Commissioner-General Anthony Kwasi Sarpong clarified the reforms centered on the Modified Taxation Scheme (MTS), VAT expansion for real estate, and non-life insurance aim to “seal revenue loopholes” without introducing new taxes.
Core Changes Under MTS
The MTS simplifies tax compliance for micro, small, and medium enterprises through three approaches:
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Presumptive Tax (PTI): Quarterly fixed payments (max GH¢45) for businesses under GH¢20,000 annual turnover.
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Turnover-Based Tax (PTT): 3% flat rate for annual earnings between GH¢20,000–GH¢500,000.
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Modified Cash Basis (MCB): Graduated rates with deductions for entities exceeding GH¢20,000.
Eligible businesses can register via GRA offices, a dedicated app, or pay through mobile money/USSD (*222#).
VAT Expansion
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Real Estate: 5% VAT on property supply/rentals by developers (exempting residential/agricultural properties), plus 1% COVID-19 levy. Non-compliant agents face 30% penalties.
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Non-Life Insurance: 15% VAT on premiums (fire, marine, liability, etc.). Insurers must update invoicing systems, train staff, and notify clients.
Sarpong emphasized these measures align with the Income Tax Act (2015) and VAT Amendment Act (2023), noting Ghana’s urgency to “reset the economy” as donor support declines. The reforms coincide with an expanded Special Voluntary Disclosure Program for undisclosed foreign income.
