Financials

Taxes

Companies operating in Ghana are liable to pay varied levels of taxes depending on the sector of operation, and the location of the project and whether the company is listed on the Ghana Stock Exchange. Taxable profits are based on profits declared in audited accounts subject to adjustments made for capital allowances. For more information on the tax rates visit Website: www.gra.gov.gh 

Income tax incentives are provided under the Income Act 2015 (Act 896) to replace the Internal Revenue Act, 2000 (Act 592). Income Tax rates applicable to resident individuals are:

INCOME TAX

Corporate Tax: This is the tax paid by companies on their profits in the year. The tax rate is 25%.

Personal Income Tax: Self-employed persons are required to pay Income tax at graduated rates in four equal installments. The current Personal Income Tax rates took effect from January 2016.

Pay As You Earn (PAYE): The PAYE contributions are withholdings from salaries of employees in order to satisfy their income tax responsibilities. The PAYE is computed with the Personal Income Tax rates. (See box below)

 

ANNUAL TAX RATES

Chargeable Income (GH¢)

Rate (%)

Tax (GH¢)

Cumulative Chargeable Income (GH¢)

Cumulative Tax (GH¢)

First 2,592

Free

NIL

2,592.00

NIL

Next 1,296

5

64.80

3,888.00

64.80

Next 1,812

10

181.20

5,700.00

260.00

Next 33,180

17.5

5,806.50

38,880.00

6,052.50

Exceeding 38,880

25

 

 

 

Exceeding 38,880 – 25%

 

MONTHLY TAX RATES

Chargeable Income (GH¢)

Rate (%)

Tax (GH¢)

Cumulative Chargeable Income (GH¢)

Cumulative Tax (GH¢)

First 216

NIL

NIL

216

NIL

Next 108

5

5.40

324

5.40

Next 151

10

15.10

475

20.50

Next 2,765

17.5

483.88

3240

504.38

Exceeding 3,240

25

 

 

 

Exceeding 3,240 – 25%

The income tax rate applicable to non-resident individuals is 20%.

 

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