PT – April 2022 – L2 – Q1a – Income Tax Liabilities

Explain taxation principles for resident and non-resident individuals.

Question

a) Explain the taxation principles of the following:

i) Resident individual
ii) Non-resident person
(5 marks)

Answer

Resident Individual:
A resident individual is taxed on global income or world-wide income, meaning that it does not matter whether the income is brought into the country or not. This is based on the principle of integrity and exchange of information.
(2.5 marks)

Non-resident Person:
A non-resident person is taxed on income accrued and derived from Ghana, i.e., income with a source in Ghana. Income brought into or received in Ghana is not taxed.
(2.5 marks)

Tags: Ghana tax system, Global income, Non-resident person, Resident Individual, Taxation principles

Topic: Resident and Non-Resident Taxation, Tax Administration
Series: APR 2022

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