It is a tax charged on an individual’s total income (income from employment, business and investment). You must pay Income Tax if you are a sole proprietor or a person in partnership and you earn income above GH¢ 319 per month.
The Government of Ghana introduced the Income Tax Act, 2015 (Act 896), to provide for the imposition of income tax and other related purposes.
A person is liable to pay income tax on their chargeable income or on final withholding payment received during the year of assessment. Income tax is payable by applying the relevant rates. A person is allowed a deduction for foreign tax credit.
Chargeable income is made up of income from employment, business or investment less any allowable deduction. Chargeable income from each source of income is determined separately.
Assessable income is income of a person from any employment, business or investment. A resident person’s assessable income is that person’s worldwide income from all sources. A non-resident person’s assessable income is that person’s income from Ghana. The assessable income of a non-resident person, who has a permanent establishment in Ghana is the income of the permanent establishment. Income has its source in Ghana if the income is accrued or derived in Ghana.
An individual’s employment income is the gains and profits from the employment for the year or during the year. This includes salary, wages, leave pay, fees, commissions, gratuities, overtime pay, bonuses and other benefits and allowances paid in cash or given in kind.
The following are excluded from the calculation of employment income:
A person’s business income is the gains and profits from that business for the year or during the year. This includes:
The following are excluded from the calculation of business income:
A person’s investment income is the gains and profits from the investment for the year or during the year. This includes:
The following are excluded from the calculation of investment income:
Income from other sources such as income from Employment, Business and Investment are put together at the end of the year and taxed as one.
You have to file a return at the end of the year.