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

New Tax Rates effective 1st January, 2020

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

The Commissioner-General of the Ghana Revenue Authority (GRA) wishes to inform the general public that the following amendments have been made to the Income Tax Act, 2015 (Act 896) by the Income Tax (Amendment) Act, 2019 (Act 1007).

  1. First Schedule to Act 896 Amended as follows:
  2. Act 1007 has revised the First Schedule to Act 896 by reviewing the Income Tax Bands applicable to Resident Individuals. Consequently, the tax bands applicable to resident individuals are:

ANNUAL INCOME TAX RATES APPLICABLE TO RESIDENT INDIVIDUALS

CHARGEABLE INCOME GH₵ RATE % TAX   GH₵ CUMULATIVE CHARGEABLE INCOME GH₵ CUMULATIVE TAX GH₵
First 3,828 Free Nil 3,828.00 Nil
Next 1,200 5 60.00 5,028.00 60.00
Next 1,440 10 144.00 6,468.00 204.00
Next 36,000 17.5 6,300.00 42,468.00 6,504.00
Next 197,532 25 49,383.00 240,000.00 55,887.00
Exceeding 240,000 @     30%

MONTHLY INCOME TAX RATES APPLICABLE TO RESIDENT INDIVIDUALS

CHARGEABLE INCOME GH₵ RATE % TAX   GH₵ CUMULATIVE CHARGEABLE INCOME GH₵ CUMULATIVE TAX GH₵
First 319 Free Nil 319.00 Nil
Next 100 5 5.00 419.00 5.00
Next 120 10 12.00 539.00 17.00
Next 3,000 17.5 525.00 3,539.00 542.00
Next 16,461 25 4,115.25 20,000.00 4,657.25
Exceeding 20,000 @    30%
  • Effective Date

These amendments took effect from 1st January, 2020.

The Commissioner-General requests the general public particularly taxpayers in the informal sector, businesses, business owners, directors of finance, tax professionals, accounting staff, accountants, auditors, tax consultants, tax advisors and paymasters to take note and comply accordingly.

COMMISSIONER-GENERAL

www.gra.gov.gh

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