Uber, Bolt, Yango owners to pay vehicle income tax on earnings from January 2024 — GRA

The Ghana Revenue Authority (GRA) has announced that owners of ride-hailing services such as Uber, Bolt and Yango will have to pay Vehicle Income Tax (VIT) on their earnings effective January 2024.

In a statement, the GRA said under Section 22 of Regulations 2016, LI 2244, any commercial vehicle owner who earns income from operating a commercial vehicle is required to pay income tax on a quarterly basis.

"Pursuant to Section 22 of Regulations 2016, LI 2244, any commercial vehicle owner that earns income from the operation of a commercial vehicle shall pay income tax on quarterly basis," the statement noted in part.

The tax collection agency said it has the authority under Sections 1, 33 and 35 of the Revenue Administration Act, 2016 (Act 915) to require taxpayers to provide information and integrate their digital platforms with GRA's monitoring system to establish correct taxes owed.

As such, the GRA is directing all ride-hailing companies operating in Ghana like Uber, Bolt and Yango to update their apps to demand proof of VIT payment from both existing and new drivers on their platforms.

"Also, Sections 1, 33 and 35 of the Revenue Administration Act, 2016 (Act 915) as amended, gives the Commissioner General the authority to give written directives, require any taxpayer to provide information or connect their digital system to the Commissioner General's monitoring platform for the purposes of establishing the correct taxes payable to the State," the statement added.

Drivers will be expected to provide softcopies of their VIT stickers for verification by the companies and GRA.

The companies will also have to submit lists of all vehicles on their platforms to GRA quarterly.

The new tax compliance measures will take effect from January 1, 2024, the GRA said.

It advised all affected drivers to register their vehicles at GRA offices to begin making VIT payments via the *222# shortcode.