GRA Gift Tax Declaration Form

A GRA Gift Tax Declaration Form in Ghana evidences a donor's intention to give an asset and the donee's acceptance of it.

Section 100 of the Income Tax Act 2015 (Act 896) treats a gift received by a person from a connected person as income of the recipient for Ghana tax purposes where the total value of gifts from that connected person in the year of assessment exceeds GHS 100 per gift or such other threshold as may be prescribed. The term 'connected person' under Act 896 includes relatives (spouses, parents, children, siblings, and other close family members), business partners, employers (for non-cash gifts above the threshold), and other persons in a relationship of influence with the recipient. A gift received from an unconnected person at arm's length — for example, a prize from a competition — is not subject to Gift Tax under Section 100 of Act 896 but may constitute income subject to income tax under other provisions of Act 896.

The GRA Gift Tax Declaration Form Ghana is distinct from the Stamp Duty payable on instruments of gift transfer under the Stamp Duty Act 2005 (Act 689) — which is a transaction tax on the document — and from Capital Gains Tax under Section 56 of Act 896, which applies to the donor (not the recipient) where the donor is treated as having disposed of the asset at its market value. In a gift of property, both the donor's CGT liability and the recipient's Gift Tax liability may arise simultaneously on the same transaction. The GRA Gift Tax Declaration Form Ghana is also distinct from estate duty or inheritance tax, which Ghana does not currently impose on the recipient of an inheritance from a deceased's estate.

The Income Tax Act 2015 (Act 896) provides a number of exemptions from Gift Tax under Section 100 and the Third Schedule to Act 896. Gifts received from the government of Ghana or a public authority, gifts to registered charities, gifts received by way of a will or inheritance on death, and certain gifts received in the course of business as tips or service gratuities are exempt. Forms-legal.com provides this template as a starting point for Gift Tax compliance in Ghana.

The Ghana Revenue Authority (GRA) Domestic Tax Revenue Division processes Gift Tax declarations through its regional offices in Accra, Kumasi, Takoradi, Tamale, Sunyani, Cape Coast, and other regional centres. Recipients who are in doubt about whether a particular gift is taxable under Section 100 of Act 896 should seek advice from a GRA-registered tax adviser or a Ghanaian chartered accountant enrolled with the Institute of Chartered Accountants (Ghana) — ICAG.

A GRA Gift Tax Declaration Form is needed in Ghana in the following circumstances.

The GRA Gift Tax Declaration Form is required under Section 100 of the Income Tax Act 2015 (Act 896) when a person resident in Ghana receives a gift of money or property from a connected person — including a family member, business associate, or employer — and the total value of gifts received from that connected person during the year of assessment exceeds the prescribed threshold.

The form is needed when an employee receives a non-cash gift from their employer above the threshold exempted under the Income Tax Act 2015 (Act 896). Under Act 896, the value of non-cash benefits provided by employers to employees above the exempt threshold are treated as employment income and subject to PAYE under Section 114 of Act 896; however, where a gift is made to a connected employee outside the regular employment relationship, Gift Tax under Section 100 may apply.

The GRA Gift Tax Declaration Form is required when a family member in Ghana receives a large monetary gift — for example, where a parent transfers funds to an adult child to purchase land or a vehicle — and the transfer is not in the course of a commercial transaction. The recipient must assess whether the gift falls within the connected-person scope of Section 100 of Act 896 and whether the value exceeds the threshold.

The form is needed when a business owner transfers assets from a company to a shareholder by way of a gift or at below-market consideration. GRA may treat such a transfer as a deemed gift to the shareholder under Act 896, triggering a Gift Tax liability in addition to any dividend or benefit assessment.

The GRA Gift Tax Declaration Form must be filed and tax paid within 30 days of the end of the month in which the taxable gift is received, under the Revenue Administration Act 2016 (Act 915). Late filing and payment attract penalties and interest under Act 915. Forms-legal.com provides this template as a starting point for Gift Tax filing in Ghana.

A valid GRA Gift Tax Declaration Form under Section 100 of the Income Tax Act 2015 (Act 896) must contain the following essential elements.

Recipient Identity: Full legal name of the gift recipient; Ghana Revenue Authority (GRA) Tax Identification Number (TIN); Ghana Card number (if issued by the National Identification Authority, NIA, under Act 750); current residential address; and the recipient's relationship to the donor (family member, employer, business associate, or other connected person).

Donor Identity: Full legal name of the person making the gift; donor's GRA TIN (where known); donor's address; and the nature of the connection between the donor and the recipient as defined under the Income Tax Act 2015 (Act 896) — spouse, parent, child, sibling, employer, business partner, or other connected person.

Gift Description: Description of the gift received — whether cash in Ghana Cedis (GHS) or foreign currency, land and buildings, shares, motor vehicle, jewellery, or other property; the date on which the gift was received; and a reference to any deed of gift or instrument of transfer where the gift involved real property, shares, or other documented assets.

Valuation of Gift: The market value of the gift in Ghana Cedis (GHS) at the date of receipt. For gifts of land and buildings, the Lands Commission valuation or a professional valuation by a GRA-recognised valuer may be required. For shares in unlisted companies, a professional share valuation may be required. For gifts of foreign currency, conversion to GHS at the Bank of Ghana interbank exchange rate on the date of receipt.

Gift Tax Computation: Total value of gifts received from the connected donor during the year of assessment; deduction of any exempt amount under the Third Schedule to Act 896; chargeable gift amount; applicable Gift Tax rate under Act 896; and total Gift Tax payable.

Declaration: Declaration by the recipient that the information is true and complete, and acknowledgment that failure to declare taxable gifts is an offence under the Revenue Administration Act 2016 (Act 915). Forms-legal.com provides this template as a starting point for GRA Gift Tax compliance in Ghana. Recipients should consult a GRA-registered tax adviser or ICAG member where the gift involves complex property transactions.

Additional compliance elements for a GRA Gift Tax Declaration Form 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.