GRA Capital Gains Tax Return

A GRA Capital Gains Tax Return is the statutory self-assessment return filed by a resident or non-resident taxpayer with the Ghana Revenue Authority (GRA) to declare and pay tax on capital gains arising from the disposal of chargeable assets in Ghana under Section 56 of the Income Tax Act 2015 (Act 896). The GRA Capital Gains Tax Return (Ghana) is administered by the GRA Domestic Tax Revenue Division, which maintains offices in Accra, Kumasi, Takoradi, Tamale, and other regional centres across Ghana's 16 administrative regions.

Section 56 of the Income Tax Act 2015 (Act 896) imposes Capital Gains Tax (CGT) on gains realised by a person from the disposal of a chargeable asset. Chargeable assets for CGT purposes under Act 896 include land and buildings situated in Ghana; shares and other securities in Ghanaian companies whether listed on the Ghana Stock Exchange (GSE) or unlisted; business assets including plant, machinery, and goodwill; patents, trademarks, and intellectual property rights situated in Ghana; and foreign currency held as a capital asset. The rate of Capital Gains Tax under Act 896 is 25% for gains realised by resident and non-resident individuals and companies on chargeable asset disposals, except for gains on disposal of shares listed on the GSE which attract a reduced rate of 5% under the Income Tax (Amendment) Act 2021 (Act 1066).

The GRA Capital Gains Tax Return Ghana is distinct from the Stamp Duty assessment payable to the Ghana Revenue Authority (GRA) on instruments of transfer under the Stamp Duty Act 2005 (Act 689), which is a transaction tax on the document of transfer rather than a tax on the gain. Both CGT and Stamp Duty may apply to the same transaction — for example, a sale of land in Accra will attract CGT on the vendor's gain under Act 896 and Stamp Duty on the conveyancing instrument under Act 689. The GRA Capital Gains Tax Return is also distinct from the Annual Income Tax Return — where capital gains form part of business income of a company, they are reported in the GRA Corporate Income Tax Return under Section 124 of Act 896.

The legal framework for the GRA Capital Gains Tax Return Ghana also includes the Revenue Administration Act 2016 (Act 915), which prescribes the procedural rules for GRA tax assessments, returns, objections, appeals to the Tax Appeals Board, and further appeals to the High Court (Tax Division) in Accra under Act 915. The Internal Revenue Service Act 2000 (Act 592) has been largely superseded by Act 896, but certain legacy provisions remain relevant for pre-2016 tax periods. Forms-legal.com provides this template as a starting point for Ghanaian capital gains tax compliance.

Ghana's Capital Gains Tax applies to both residents and non-residents who dispose of chargeable assets situated in Ghana. A non-resident vendor of Ghanaian real estate or shares must appoint a local GRA-registered tax agent to file the CGT return and remit the tax before the proceeds of the sale are remitted abroad through a Bank of Ghana-licensed commercial bank under the Bank of Ghana Foreign Exchange Act 2006 (Act 723).

A GRA Capital Gains Tax Return is needed in Ghana in the following circumstances.

The GRA Capital Gains Tax Return is required when a person — whether an individual resident in Ghana, a company incorporated under the Companies Act 2019 (Act 992), or a non-resident — disposes of a chargeable asset situated in Ghana and realises a gain. Disposal includes outright sale, exchange, gift, deemed disposal on death, and certain reorganisation transactions under Section 56 of the Income Tax Act 2015 (Act 896).

The return is needed when a landowner sells land or buildings in Ghana — whether in Greater Accra, Ashanti, Western, Eastern, or any of Ghana's 16 administrative regions — and realises a gain over and above the cost base of the property. The gain is computed as the disposal proceeds minus the allowable cost base (original acquisition cost plus capital improvements). GRA valuers at the Land Valuation Division of the Lands Commission may assess the market value of the property where the declared disposal price appears undervalued.

The GRA Capital Gains Tax Return is required when a shareholder disposes of shares in a Ghanaian company — whether shares listed on the Ghana Stock Exchange (GSE) administered by the Securities and Exchange Commission (SEC) of Ghana under the Securities Industry Act 2016 (Act 929), or shares in unlisted private companies incorporated at the Office of the Registrar of Companies (ORC) under the Companies Act 2019 (Act 992).

The return is needed when a business transfers goodwill, patents, trademarks, or other intangible assets as part of a business sale, merger, or acquisition in Ghana. Under Section 56 of Act 896, the disposal of goodwill and intellectual property rights constitutes a chargeable disposal for CGT purposes.

The GRA Capital Gains Tax Return must be filed within 30 days of the end of the month in which the disposal takes place, and CGT must be paid at the time of filing under the Revenue Administration Act 2016 (Act 915). Late filing attracts interest and penalties under Act 915. Forms-legal.com provides this template as a starting point for GRA capital gains tax filing in Ghana.

A valid GRA Capital Gains Tax Return under Section 56 of the Income Tax Act 2015 (Act 896) must contain the following essential elements.

Taxpayer Identity: Full legal name of the taxpayer (individual or company); Ghana Revenue Authority (GRA) Tax Identification Number (TIN); Ghana Card number (for individuals) or ORC registration number (for companies); current residential or registered business address; and the tax period to which the return relates.

Chargeable Asset Details: Description of the chargeable asset disposed of; location of the asset (for land and buildings, the Land Title Certificate number or Indenture reference and the region/district in Ghana); date of acquisition of the asset; date of disposal; and the form of disposal (sale, exchange, gift, or deemed disposal).

Computation of Gain: Disposal proceeds — the gross amount received or the market value at date of disposal; deductible cost base — the original acquisition cost plus allowable capital expenditure on improvements; incidental costs of acquisition (legal fees, survey fees, stamp duty paid on acquisition under the Stamp Duty Act 2005, Act 689); and incidental costs of disposal (agent's commission, legal fees, registration fees paid to the Lands Commission). The net gain equals disposal proceeds minus total allowable costs.

Capital Gains Tax Computation: Application of the CGT rate — 25% for most chargeable assets under Act 896; 5% for gains on disposal of shares listed on the Ghana Stock Exchange (GSE) under the Income Tax (Amendment) Act 2021 (Act 1066). Where the asset is a principal private residence that has been the taxpayer's main residence for the full period of ownership, an exemption may apply under Act 896 subject to GRA approval.

Tax Payment Details: Total CGT payable; method of payment (GRA online portal, GRA Domestic Tax Office, or designated Bank of Ghana-licensed bank); payment reference number.

Declaration and Signature: Declaration by the taxpayer or authorised tax agent (registered with GRA under Act 915) that the return is true and complete. Submission of a false CGT return is an offence under the Revenue Administration Act 2016 (Act 915) and the Criminal Offences Act 1960 (Act 29). Forms-legal.com provides this template as a starting point for GRA CGT compliance in Ghana.

Additional compliance elements for a GRA Capital Gains Tax Return used in Ghana include: Under Ghanaian law, the Constitution of the Republic of Ghana 1992 is the supreme law. The Courts Act 1993 (Act 459) governs court procedures. The Ghana Revenue Authority (GRA) administers tax under the Income Tax Act 2015 (Act 896). The High Court of Ghana has unlimited original jurisdiction under Article 140 of the Constitution. The Data Protection Act 2012 (Act 843) and the Data Protection Commission govern personal data processing. Forms-legal.com provides this template as a starting point for Ghana-compliant documentation.