While some businesses have attempted and found it difficult to make statutory payments, others do not have any idea on how to go about making their statutory payments in this period of COVID-19. This article seeks to give relief from such distressing situations.
Statutory payments: what they are and when to pay them
These are payments that, per the provisions of the laws of Ghana (Income Tax Act 2015, Act 896, Value Added Tax 2013, Act 870, National Pensions Act 2008, Act 766, National Pensions Amendment Act 2014, Act 883, Companies Act 1963, Act 179, among others), businesses depending on their nature (the type of business – company, sole proprietorship or partnership) and industry within which they operate, are obliged to pay on their behalf, on behalf of their employees and other third parties.
The Laws provide that, for any given month, PAYE (Pay As You Earn) taxes and withholding taxes should be made by the 15th of the ensuing month. Pension contributions to SSNIT (Tier 1) and relevant Tier 2 firms should also be made by 14th of the next month whereas VAT (Valued Added Tax) be made by the 30th of the next month. Also, taxes are payable to Ghana Revenue Authority (GRA) but pension contributions are made to SSNIT and relevant Tier 2 firms for Tiers 1 and 2 respectively.
How to make payments
Owing to COVID-19, and as part of efforts to stop the spread of the virus, offices of these regulatory bodies have been temporarily closed. This has compelled the need for non-physical means of making payments. Thus, payments are now made electronically.
It is noteworthy that bank details to facilitate electronic payments have been provided. It is also crucial to state for that for GRA, payments must be made into the bank account of the tax office you are registered with. Click here for the bank account details of each GRA branch.
For SSNIT, payment can be made into the head office’s bank account, which is as follows:
Bank name: Bank of Ghana
Account name: Social Security and National Insurance Trust
Account Number: 0121740071000
Sort code: 010101
BIC (SWIFT): BAGHGHAC
Hope this is useful to use as you seek to fulfill your statutory obligations. If you still face any challenges or need your payments to be made for you, feel free to contact Built Accounting Services through the following:
Remember that you can also get great business information on our website www.builtaccounting.com