Ride Hailing Vehicle Owners to Pay Income Tax

The Ghana Revenue Authority (GRA) has announced that owners of commercial ride hailing vehicles are required to pay a quarterly income tax to the Authority.

In a statement issued on 20/12/23, the Authority states that “pursuant to Section 22 of Regulation 2016, LI 2244, any commercial vehicle owner that earns income from the operation of a commercial vehicle must pay income tax on a quarterly basis”.

According to GRA, Sections 1, 33 and 35 of the Revenue Administration Act, 2016 (Act 915) also gives the Authority powers to give written directives, require any taxpayer to provide information or connect their digital system to the Commissioner General’s monitoring platform for purposes of establishing the correct taxes payable to the State.

It therefore urged all ride hailing companies that operate in Ghana to update their digital platforms and require evidence of payment of Vehicle Income Tax (VIT) for both existing and new vehicles.

By the deadline of Monday, January 1, 2024, all owners of ride hailing vehicles operating in Ghana are to carry out a onetime registration exercise of their vehicles using the short code *222# at any GRA office which will then allow them pay the VIT for their vehicles.

GRA also directs that all ride hailing companies operating in Ghana are to demand a softcopy of the VIT sticker from their drivers and ensure validation and authenticity of stickers with the GRA.

Lastly, the authority also mandates that all ride hailing companies are to submit a list of all vehicles on their platform quarterly to GRA.