CAPITAL
Accra
POPULATION
29 Million
AREA
238,533 sq km
LEGAL SYSTEM
A mixed system of English common law and customary law.
TAX REGIME
Personal Income Tax | Local & Expatriate
| Summary | Tax Rate/s |
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Income Tax is a tax charged on a person’s income from employment, business and investment. Persons such as employees, self-employed, persons in partnership, shareholders and directors of companies and trustees and beneficiaries of a trust are all charged tax on income earned.
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Check additional tables for schedule |
Corporate Income Tax
| Summary | Tax Rate/s |
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It is a tax charged on a company’s total income sources at the end of the company’s accounting income year. Companies pay tax on business and investment income known as gains and profit. This income does not include expenses made while obtaining the income.
|
25% |
Withholding Tax
| Summary | Tax Rate/s |
|
It is a tax which is deducted at source by a withholding agent (a person required to deduct tax) when making payment to another person and accounted for later to the GRA. You must be registered to be allowed to withhold tax from business transactions.
|
Check additional table to see the rates |
Capital Gains Tax
| Summary | Tax Rate/s |
| Capital Gain Tax is a direct tax levied on gains from realization of capital assets or liabilities. | Corporate Businesses=25%
Hotels = 22% Petroleum Companies=35% Companies engaged in non-traditional exports=8% |
Environmental Levy
| Summary | Tax Rate/s |
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VAT Registered Taxpayers cannot claim the NHIL & the GETFund charged on their purchases
Goods charged at the VAT Flat Rate of 3% are not subject to the NHIL & GETFund. The levies are to be charged at every stage that a VAT Standard rated supply is made by VAT Registered Taxpayer. VAT Registered persons are now to account for NHIL and GETFund on imported services (which include management and technical services, patents, licenses, etc.) on monthly NHIL and GETFund returns. Items that attract a zero rate of VAT also attract a zero rate of GETFund and the NHIL Levy. VAT Registered Taxpayers who are on the Standard Rated Scheme (SRS) i.e. Manufacturers & Service providers are to account and pay for NHIL and GETFund. |
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Inheritance Tax
| Summary | Tax Rate/s |
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Inheritance, estate, and gift taxes are not expressly and separately provided for under the tax laws of Ghana.
It is worth noting that a gift received by an individual is included in the assessable income of the individual and taxed at the applicable tax rate of 25% (for non-resident) or the highest marginal rate of 30% (for resident). There is, however, an option to elect and apply a 15% tax on gifts received by an individual if that gift is not in respect of business or employment. |
Business or employment related = 30%(resident)
25%(non-resident) Non-business or employment related = 15% |
Dividend Tax
| Summary | Tax Rate/s |
|
A dividend tax is a tax imposed by a jurisdiction on dividends paid by a corporation to its shareholders. The primary tax liability is that of the shareholder, though a tax obligation may also be imposed on the corporation in the form of a withholding tax.
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Dividend withholding tax rate of 8% |
VAT/GST
| Summary | Tax Rate/s |
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Value Added Tax (VAT) is a tax applied on the value added to goods and services at each stage in the production and distribution chain. It forms part of the final price the consumer pays for goods or services. In some countries it is called ‘Goods and Services Tax’ or GST.
|
Standard Rates
Flat Rate=3% |
Bilateral Tax Treaties and DTAAs
| Summary | Tax Rate/s |
| Ghana_Belgium
Ghana_Denmark Ghana_France Ghana_Germany Ghana_Italy Ghana_Mauritius Ghana_Netherlands Ghana_Singapore Ghana_South Africa Ghana_Swiss Ghana_UK |
Tax Incentives
| Summary | Tax Rate/s |
| Marriage / Responsibility Relief
This relief is granted to a resident individual who takes care of his wife or her husband or takes care of at least two children.
Child Education Relief This is granted to a resident individual who pays his or her child’s school fees. The relief is granted to a maximum of three children attending any recognized registered educational institution in Ghana. A child under this law includes an adopted child or ward.
Both parents cannot claim this relief in respect of the same child /children. Disability relief This is granted to persons who prove to the satisfaction of the Commissioner-General that they are disabled
This relief is granted to disabled persons who receive income from business or employment only. Old age relief This relief is granted to persons who are 60 years of age
Aged dependant relative relief This relief is granted to a resident individual who takes care of a relative who is sixty years old and above.
The relief is granted up to a maximum of two relatives The relief does not apply to a dependent’s spouse or child Two persons cannot claim this relief in respect of the same relative. 2. Other Reliefs Educational relief A resident individual can also be granted educational relief if that person undergoes training to update his/her professional, technical or vocational skills or knowledge.
Mortgage Relief Mortgage interest relief is a tax relief based on the amount of qualifying mortgage interest that you pay in a given tax year for your principal private residence and this relief can be enjoyed for only one building.
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The relief is GH¢1,200 per Year
The relief is GH¢600 per Child per Year. The relief is 25% of the disabled person’s income from business or employment
The relief is GH¢1,500 per Year The relief is GH¢1,000 per Year. The relief is GH¢2000 per year. |
TOP INDUSTRIES
MINING
LUMBERING
LIGHT MANUFACTURING
ALUMINIUM SMELTING
FOOD PROCESSING
CEMENT
SMALL COMMERCIAL SHIP BUILDING
PETROLEUM
ECONOMIC OVERVIEW
Ghana has a market-based economy with relatively few policy barriers to trade and investment in comparison with other countries in the region, and Ghana is endowed with natural resources.
The country’s economy was strengthened by a quarter-century of relatively sound management, a competitive business environment, and sustained reductions in poverty levels.
Agriculture accounts for about 20% of GDP and employs more than half of the workforce, mainly small landholders. Gold, oil, and cocoa exports, and individual remittances, are major sources of foreign exchange.
The expansion of Ghana’s nascent oil industry has boosted economic growth. However, the key economic concerns facing the government include the lack of affordable electricity, lack of a solid domestic revenue base, and the high debt burden.
Priorities for the new administration include rescheduling some of Ghana’s $31 billion debt, stimulating economic growth, reducing inflation, and stabilizing the currency.
Prospects for new oil and gas production and follow through on tighter fiscal management are likely to help Ghana’s economy.
ANNUAL INCOME TAX RATES APPLICABLE TO RESIDENT INDIVIDUALS
- CHARGEABLE INCOME GH₵
- First 3,828
- Next 1,200
- Next 1,440
- Next 36,000
- Next 197,532
- Exceeding 240,000 @
- RATE %
- Free
- 5
- 10
- 17.5
- 25
- 30%
- TAX GH₵
- Nil
- 60.00
- 144.00
- 6,300.00
- 49,383.00
- Exceeding 240,000 @
- CUMULATIVE CHARGEABLE INCOME GH₵
- 3,828.00
- 5,028.00
- 6,468.00
- 42,468.00
- 240,000.00
- Exceeding 240,000 @
- CUMULATIVE TAX GH₵
- Nil
- 60.00
- 204.00
- 6,504.00
- 55,887.00
- Exceeding 240,000 @
MONTHLY INCOME TAX RATES APPLICABLE TO RESIDENT INDIVIDUALS
- CHARGEABLE INCOME GH₵
- First 319
- Next 100
- Next 120
- Next 3,000
- Next 16,461
- Exceeding 20,000 @
- RATE %
- Free
- 5
- 10
- 17.5
- 25
- 30%
- TAX GH₵
- Nil
- 5.00
- 12.00
- 525.00
- 4,115.25
- Exceeding 20,000 @
- CUMULATIVE CHARGEABLE INCOME GH₵
- 319.00
- 419.00
- 539.00
- 3,539.00
- 20,000.00
- Exceeding 20,000 @
- CUMULATIVE TAX GH₵
- Nil
- 5.00
- 17.00
- 542.00
- 4,657.25
- Exceeding 20,000 @