Business News of 2014-06-06

GRA releases list of taxable financial services

The Ghana revenue Authority (GRA) has finally settled on the list of services that would attract the 17.5 percent Value Added Tax (VAT) and National Health Insurance Levy (NHIL).
According to a letter from the Authority to the Bankers and signed by its Commissioner-General, George Blankson, the 32 fee-based services would attract the tax from July 1, 2014.
The list of fees, commissions and similar charges for financial services that are subject to the tax was developed by the Technical Committee for the Implementation of VAT Act 2013 (Act 870) which was made up of representatives of the Ghana Bankers Association, the Ministry of Finance and the Ghana Revenue Authority and approved by the Minister of Finance, Seth Terkper.
Find below the full list of financial services that would attract the 17.5% tax:

1.     CURRENT ACCOUNTS (Foreign/Local) - CORPORATE BODIES ONLY

2.     BANK DRAFT (PAYMENT ORDER)

3.     STOPPED CHEQUES

4.     RETURNED CHEQUES

5.    COMMISSION ON TURNOVER (CORPORATE BODIES ONLY)

6.     OVERDRAFT PROCESSING OR RENEWAL FEE

7.     REVOLVING ACCEPTANCE CREDIT

8.    ARRANGEMENT FEE FOR FACILITIES

9.    STATEMENTS AND CERTIFICATES OF BALANCE

10.  CLEARING CHARGES

11.  CHEQUES FOR COLLECTION

12.  STANDING ORDERS

13. TELEPHONE BANKING

14.  SAFE CUSTODY

15. CHEQUE BOOKS

-  Sale of cheque leaflet

-  Replacement of Lost Cheque Book

16.   DEBIT CARDS AND CREDIT CARDS

17.    REVOLVING CREDITS

18.   COLLATERAL MANAGEMENT

19.   TRANSFER OF DOCUMENTS TO OTHER BANKS

20.    GUARANTEES/BONDS/TENDER/PERFORMANCE

21.    REQUEST FOR FOREX DRAFTS

22.   OUTWARDS TRANSFER: SWIFT/TELEX

-  Drafts/Money Orders - Customer

23.   TRAVELLERS CHEQUES, DRAFTS

24.   CHEQUE LODGEMENTS - (FOR CORPORATE BODIES AND THIRD PARTIES ONLY)

25.    EVACUATION FEE (CASH-IN-TRANSIT)

26.    UNPAID STANDING ORDER

27.   CLOSURE OF ACCOUNTS

28.    REMOTE BANKING SERVICES

-  Online Banking (Internet)

-  E-statements

-  E-clients

-  Phone banking

-  SMS banking

-  Mobile Banking

-  Monthly subscription

-  Financial Transaction Fee

29.   LENDING FEES

-  Commitment Fee (Arrangement fee, Processing fee, facility fee)

-  Processing Fee

-  Property Valuation Fee (Open market value)

-  Guarantee Commission

-   Bid Security

-  Bank Credit Letter (Letter of Intent)

-  Mobilization Guarantee

-  Retention Guarantee

-  Performance Bond

-  Default or restructured

30.   OTHER LOANS, EXCLUDING SALARY ADVANCE

-  Arrangement Fees

-  New Loans

-  Top-Ups

-  Early Settlement Fees

31.   LETTERS OF CREDIT (IMPORTS)

Establishment Commission

-  Arrangement Fee

* Presentation under L/C Drawings Amendments:

-  Increase in Amount

-  Extention of period

-  Extention of period - another quarter

-  Discrepancy Other amendments:

32.   DOCUMENTARY BILLS FOR COLLECTION (IMPORTS)

Handling charges - customers Negotiation Commission

-  Advice of fate

-  Bills deleted

-  Protest Payment Commission

-  Holding charges (per quarter)

Prior Approval - Customers with:

-  Own Resources

-  Telex/Cable charges

- Swap charge

  Customers allocated funds from Bank;

        ExchangeTelex / Cable charges