Modified Taxation Scheme

Simplified Tax Scheme for the Informal Sector

The Modified Taxation Scheme is a simple and flexible way for individuals working in the informal sector to meet their tax obligations with the GRA. It removes the complex processes of the standard tax system, making it easier to comply.

This is not a new tax, but a redesigned approach to make filing and paying taxes more practical for informal workers.

Who is this for? (The Informal Sector)

This scheme is for resident individuals who earn a living through their skills, crafts, or sales without a formal corporate employment contract. This includes, but is not limited to:

Plumbers
Electricians
Hairdressers
Seamstresses and Tailors
Mechanics
Air Conditioner Technicians
Food Vendors, etc.

Categories of the Modified Taxation Scheme

There are three categories to suit different business sizes:

1. Presumptive Tax Based on Installment (PTI)

For whom: Businesses with average annual sales not exceeding GHC 20,000 over three consecutive years.

How it works: You pay a fixed tax amount based on your income level and type of business activity.

2. Presumptive Tax Based on Turnover (PTT)

For whom: Businesses with annual sales of more than GHC 20,000 but not exceeding GHC 500,000.

How it works: You pay a flat rate of 3% on your total annual sales (turnover).

3. Modified Cash Basis (MCB)

For whom: Taxpayers who do not qualify for the presumptive taxes (PTI and PTT) or choose this method.

How it works: You pay tax only on your profit—your earnings after deducting all allowable business expenses.

Who Does NOT Qualify for Presumptive Tax (PTI/PTT)?

The following individuals must register under the Modified Cash Basis (MCB) or standard taxation instead:

Professionals with formal qualifications (e.g., Lawyers, Engineers, Accountants).
Owners of multiple businesses or business outlets.
Partners in a registered business partnership.
Individuals who choose to opt out voluntarily.

What you need to Register

Registration is quick and easy. You will need:

Ghana Card (National ID)
Ghana Post GPS Digital Address
Phone Number
Basic Sales Information
Business Registration or Permit (if you have one)

How to register

You can register through any of these methods:

Mobile App: Download the MTS Taxpayer App from the App Store or Google Play Store.
In-Person: Visit your nearest GRA Office or Taxpayer Service Center for assistance.
Through a Field Officer: Get registered directly by a GRA field agent.
Via Associations: Register through your trade association or union.

How to Pay Your Taxes

The GRA offers convenient payment options:

USSD Code: Dial *880# on your mobile phone.
MTS Taxpayer’s App: Pay directly using your Mobile Money wallet within the app.

Filing Yearly Returns

At the end of the year, you will fill a form in the MTS Taxpayer’s App with details of your actual sales for the period. This is called Filing a Return. Why is this important? Filing your return helps the GRA make a fair assessment of your tax situation and ensures you are in good standing.

File and Pay Personal Income Tax (PIT)