Rent Income To Attract 10 Percent Tax

Revenue accruing from rent payments would attract ten per cent tax from next year. Act 552 of the Rent Law treats rent income as a dividend, which means that, it must be tax deductible. This is currently not being implemented. Finance Minister Yaw Osafo says because the law considers rent as dividend, a ten per cent tax must be applied.

He said a new Legislative Instrument will be introduced next year to make it easier to collect such taxes. Individuals will however be exempt from the payment of rent tax, which will be imposed on embassies, banks, foreigners and corporate bodies.

Mr. Osafo Marfo who was speaking at a meeting with financial journalists also announced that amendments would be made to the insurance law. According to him the review will make it mandatory for Insurance companies to invest in long-term financial instruments instead of the 31-day Treasury Bills.