GRA proposes new tax policy under MTS

The Ghana Revenue Authority (GRA) is planning to broaden the Modified Taxation Scheme (MTS) to small limited liability companies with annual turnover up to GH¢750,000. This adjustment aims to tailor the tax system to the needs of smaller businesses and lessen the paperwork for firms opting to formalize. Under the new plan, businesses operating as individuals, sole proprietors, partnerships, or limited liability companies would gain access to a simplified tax structure, avoiding the typically stringent compliance demands for larger corporations.

GRA's Commissioner-General, Anthony Kwasi Sarpong, shared this policy direction at an MTS stakeholder workshop, organized by Eban Capital, ASSI, MASLOC, YEA, and the GRA. Elsie Appau-Klu, GRA's Technical Adviser and MTS Committee Chair, explained that the proposal is crucial as more young people and women are registering their small businesses as limited liability companies, despite limited operation scales. Presently, the MTS primarily applies to individuals and sole proprietors.