GRA to tax clothing allowance of bankers

The clothing allowance paid to members of the Ghana Banking Association is now subject to taxation, the Ghana Revenue Authority (GRA) has revealed.

In a letter addressed to the Executive Secretary of the Ghana Banking Association on Tuesday, 17 December 2019 and signed by the Acting Commissioner-General of the GRA, Ammishaddai Owusu-Amoah, the GRA referred to a meeting held on the same day at the Office of the Commissioner-General to that effect.

It stated that: “As was discussed in relation to taxation of Clothing Allowance paid by members” of the Ghana Banking Association, the GRA wishes to “reiterate our position that clothing allowance, unless it is reimbursable, is a taxable allowance.”

The GRA continued: “However, in view of the misunderstanding surrounding the ruling that was giving to UNICOF and the interpretation by members of your association, the following were agreed, that as was agreed in earlier discussion, your members should start charging tax on clothing allowance with effect from January 2019” and that “all issues relating to the above subject before 1 January 2019 that were outstanding as of today are deemed closed.”

The GRA added: “By copy of this letter, Deputy Commissioner LTO is to ensure that this agreement is implemented.”

Source: classfmonline.com