Corporate Income Tax (CIT)

Innovation| Professionalism| Fairness

GRA⋅Domestic Tax⋅Tax Types⋅Corporate Income Tax (CIT)

Corporate Income Tax (CIT)

This is a tax imposed on the income of companies incorporated under the laws of Ghana or elsewhere. Section 1 of the Income Tax Act, 2015, (Act 896). Click HERE to File and Pay your CIT

Steps Entities Must Take

Register as a taxpayer - Every business liable to taxation, under the Income Tax Act, 2015, (Act 896)-as amended is required to register with GRA as a taxpayer. You can visit any DTRD Taxpayer Service Centre to be registered. Please Note: You must ensure that all your business details (certificate to commence business, certificate of incorporation, directors’ CV etc.) are up to date before you visit our office. If you are already a registered taxpayer, you can apply for a tax type to be added to your registration, through the Taxpayer’s Portal.
Submit annual tax returns - Every registered company must file its annual returns for each year of assessment. Returns can be submitted or filled either by visiting any DTRD Taxpayer Service Center or electronically through the Taxpayer's Portal.
Submit estimated self- assessment - In addition to annual returns, every company is required to submit a provisional self- assessment within the first quarter of every year of assessment. Taxpayers are permitted to revise upwards or downwards the self-assessment estimates made until the last day of the basis period of that company
Make payment - Every registered entity which carried out taxable activity and earned an income is mandated to make payment of all such taxes due, arrears, penalties and interest thereon on appropriate due dates. Click on File and Make Payment or visit the nearest DTRD Taxpayer Service Centre to pay all your taxes.

Payment Period of CIT

Self-Assessment Payment must be done in four quarterly instalments

First payment: on or before the last day of the 1st quarter of the year i.e. 31st March of each year of assessment
Second payment: on or before the last day of the 2nd quarter of the year i.e. 30th June of each year of assessment
Third payment: on or before the last day of the 3nd quarter of the year i.e. 30th September of each year of assessment
Fourth payment: on or before the last day of the 4th quarter of the year i.e. 31st December of each year of assessment

Annual Returns

When annual returns are submitted, payment must be done on taxes not-in-dispute i.e. the outstanding of the difference between the tax in the final account and the self-estimated taxes paid.

Tax on Assessment or Audit

Payment of tax upon an audit conducted or a provisional assessment notice issued by the Authority must be honoured within the period specified in such notice.

Tax Rate

The general Corporate Income Tax rate is 25%. However, there are contemporary rates depending on the nature of business carried out by an entity, the location of the business and the specific industry in which it operates.

The tax rate applicable to a company depends on the industry as follows:

Item	Rate%
Income of a Trust	25
Company principally engaged in the hotel industry	22
Company engaged in the export of non- traditional exports	8
Financial institutions from loans granted to farming enterprises	20
Financial institutions from loans granted to a leasing company	20
Manufacturing companies located in regional capitals (except Accra & Tema)	18.5
Manufacturing companies located outside Accra, Tema and the regional capitals	12.5
Free Zone Enterprises after 10 years tax holiday (on domestic sales)	25
Free Zone Enterprises after 10 years tax holiday (on export of goods and services)	15
Petroleum income tax	35
Mineral income tax	35

The following businesses pay 1% tax during their tax holidays. These businesses pay the actual tax rates after their tax holidays.

Item	Rate%
Agro processing business conducted wholly in the country for the first five (5) years	25
Cocoa-by product business wholly in the country for the first five (5) years.	25
Tree crop farming for the first ten (10) years	25
Cash crops or livestock (excluding cattle) for first 5 years	25
Cattle farming for first 10 years	25
Waste processing business for first 7 years	25
Income derived from a certified low cost housing company	25

Young entrepreneurs who are into businesses such as manufacturing, information and communication technology, agro processing, energy production, waste processing, tourism and creative arts, horticulture and medicinal plants have five years tax holidays and after five years the following rates apply

Item	Rate%
Accra and Tema	15
Other regional capitals outside Tema and Accra	12.5
Outside, Accra, Tema and other regional capitals	10
The three northern regions	5