Majority of landlords in the Ashanti Region have refused to pay the Rent Taxes to the Ghana Revenue Authority (GRA) as provided by law which has remained a challenge to the Rent Control Department and the government.
By the provision of the Rent Act 220 of 1963, anybody who lets out or leases a property to another person must pay rent income tax of 8% for residential premises and 15% for non-residential premises within 30 days after the rent income is received.
But, Mr. Douglas Mackenzie, Ashanti Regional Director of the Rent Control Department, disclosed in an interview that most landlords had refused to pay the rent income tax over the years.
He said failure to pay tax on rent income by the due date attracts an interest of 125% of the statutory rate compounded monthly.
The Rent Officer noted that many landlords were fearless about the taxation on rental properties by the Ghana Revenue Authority, following the perception that transactions were recorded on paper.
Mr. Mackenzie, however, reminded landlords that in 2020, the Land Act digitalised real estate management in Ghana, and that the GRA was using this system, which tells whether the owners had rented their property or not, to collect the details of property tax filerd in Ghana.
He has, therefore, advised landlords to live up to their tax obligations to contribute to economic growth and national development.
The Regional Rent Control Officer also indicated that most landlords and tenants were always flouting the conditions and terms of tenancy agreements between them contrary to the rules and regulations of the Rent Control Department.
According to him, the agreement between the landlords and tenants must correspond with the receipts and entries on rent card, which must be duly addressed to the tenant within seven days upon payment and agreement.
He said the refusal of landlords to reimburse tenants immediately when they leave their premises or eject is the cause of numerous cases pending before the Rent Control Office.
According to Mr. Mackenzie, most of the landlords drag their feet in refunding rent to tenants with the reason that prospective tenants would hire the room or apartment before they could refund the monies back to tenants.
He said as a result of this situation, the Regional Rent Control Office was currently contending with 1,565 unresolved cases as at the second quarter of the year (July 2023).
Mr. Douglas Mackenzie said 1,037 cases were lodged by landlords, with 528 tenants lodging complaints against their landlords.
