AMENDMENTS TO THE INCOME TAX ACT, 2015 (ACT 896)

The Ghana Revenue Authority wishes to inform the general public that following the passage of the Income Tax (Amendment) (No. 2) Act, 2018 (Act 979), the following amendments have been made to the Income Tax Act, 2015 (Act 896).

  1. The Income Tax Amendment) (No. 2) Act, 2018 (Act 979) has provided for new rates applicable to Resident Individuals. The new rates are:

A. ANNUAL INCOME

ANNUAL INCOME TAX RATES APPLICABLE TO RESIDENT INDIVIDUALS

CHARGEABLE INCOME

 

RATE

 

TAX

 

CUMULATIVE CHARGEABLE INCOME CUMULATIVE TAX

 

GH₵ % GH₵ GH₵ GH₵
First 3,456 Nil 3,456
Next 1,200 5 60 4,656 60
Next 1,680 10 168 6,336 228
Next 36,000 17.5 6,300 42,336 6,528
Next 197,664 25 49,416 240,000 55,944
Exceeding 240,000 30

 

B. MONTHLY INCOME

MONTHLY INCOME TAX RATES APPLICABLE TO RESIDENT INDIVIDUALS

CHARGEABLE INCOME

 

RATE

 

TAX

 

CUMULATIVE CHARGEABLE INCOME CUMULATIVE TAX

 

GH₵ % GH₵ GH₵ GH₵
First 288 Nil 288
Next 100 5 5 388 5
Next 140 10 14 528 19
Next 3,000 17.5 525 3,528 544
Next 16,472 25 4,118 20,000 4,662
Exceeding 20,000 30

 

The schedules above are the annual and monthly Personal Income Tax Rates applicable to Resident Individuals.  These are the rates that should be used to compute the tax for self-employed persons and Pay As You Earn (PAYE) for salaried workers / employees.

 

  1. Sub section 10 of section 116 of Act 896 provides for the taxation of supply of goods, works or services by non-residents. The tax rates for the supply of goods, works or services by non-residents is twenty percent (20%) in accordance with paragraph 8 (1) (c) (ix) of the first schedule of Act 896.

These amendments came into force effective 1st January, 2019.

The general public particularly the self-employed, employers, employees, accountants, auditors, paymasters and tax consultants must take note and comply.

 

COMMISSIONER-GENERAL

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