A GUIDE TO TAX STAMP

The income tax Act 2015 (Act 896) imposes tax on eligible resident individuals who earn income exclusively from specified business whose sources are only from within Ghana.

These include large business operating as limited liability companies to the sole proprietor who operates a table top business.

TAX STAMP

It is a specially designed stamp given to small scale businesses in the informal sector as evidence for paying their taxes.

The Tax Stamp system allows for easy identification of small scale self-employed persons in the informal sector e.g. persons operating in kiosks, on table tops, identifiable groups such as hair dressers, dress makers, tailors, butchers, market traders, chop bar and cooked food sellers, artisans such as masons, carpenters, welders, mechanics etc.

The tax is paid quarterly in advance i.e. 15th January, 15th April, 15th July and 15th October. It is available at all the Small Taxpayer Office across the country.

WHAT DOES THE TAX STAMP LOOK LIKE?

The Tax Stamp is circular in three different colors’ light green, red and dark green. Other features include the name of the tax payer, the amount paid, the period in respect of which the payment is made. It also has a security mark. The Tax Stamp ranges from GH 3 to GH 45 per quarter.

WHO MUST BUY THE TAX STAMP?

Business operators in the informal sector are to buy the Tax Stamp e.g. artisans, masons, carpenters, welders, mechanics, hair dressers, tailors, seamstresses, chop bar operators, cooked food sellers, market traders etc.

HOW ARE THE TRADERS CLASSIFIED?

Under this system, business operators in the informal sector are grouped according to the business type and volume.

AM I OBLIGED TO BUY A TAX STAMP?

Yes, every small scale self-employed person who is qualified under the law is required to buy the Tax Stamp.

HOW DO I DISPLAY THE TAX STAMP AS A HAWKER/ TABLE TOP OPERATOR?

You must display the Tax Stamp at conspicuous place on your business premises. You may also choose anyway to display the Tax Stamp as long as it is easily visible at the place of your business.

In the case of hawkers and table top operators, it is recommended that the tax stamp be kept in a plastic sheath carried on the person at all time for inspection at any time. Any small scale self-employed person who fails to pay tax or fail to produce the Tax Stamp for inspection commits an offence and it is punishable by law.

OBLIGATIONS UNDER THE TAX STAMP REGIME

As an operator in the informal sector, affected by the Tax Stamp system, you have two obligations:

  1. You must buy the tax stamp on or before 15th January, 15th April, 15th July, and 15th October of each year.
  2. The Tax Stamps are available at the nearest Small Taxpayer Office (STO) of the Domestic Tax Revenue Division (DTRD)

WHAT IS THE RELATIONSHIP BETWEEN THE TAX STAMP AND THE INCOME TAX I FINALLY NEED TO PAY?

Taxpayers are to note that payment of the Tax Stamp is not a final tax.

The Tax Stamp is tax paid on all account and not final tax. All businesses operating on the Tax Stamp businesses are expected to file returns at the end of each calendar year, not later than 30th April, of the following year.

BENEFITS IN BUYING TAX STAMP

You are known to the Tax Authority and can therefore apply for Tax Reliefs

You can easily obtain a Tax Clearance Certificate when the need arises. You must therefore, keep all your receipts and Tax Stamps and add them to your application to the Tax office.

You have the peace of mind to pursue your business activity uninterrupted.

You contribute your quota to the promotion of infrastructure e.g. Roads, water, education, health etc.

Remember little drops of taxes makes a Great Nation.

Category “A”: Taxpayers on the Tax Stamp

  • Retail Traders
  • Susu Collectors
  • Drinking and Chop Bar Owners
  • Bakeries
  • Business Centers
  • Estates and Accommodation Agents

Category “B” Taxpayers on Tax Stamp

  • Dress Makers and Tailors
  • Hairdressers, beauticians and Barbers
  • Artisans (includes masons, carpenters, plumbers, electricians, tilers, steel benders, labourers. etc.)
  • Hiring Services other than vehicle hiring
  • Freelance Photography (persons who make a living out of photography other than operating in a photo studio or specific location).

Category “C” Taxpayers on Taxpayers on Tax Stamp

  • Butchers
  • Individual Undertakers
  • Corn and Other Millers
  • Charcoal and Firewood Vendors
  • Auto Technicians
  • Vulcanizers and Alignment Operators
  • Shoes and Equipment repairs
  • Traditional Healers and

 Other businesses determined by the Minister and published in the Gazette.

TAX TO BE PAID BY SPECIFIED SELF-EMPLOYED

 CategoryCurrent Rates Per Quarter GH₵
A.Large45.00
 Medium30.00
 Small10.00
 Table Top3.00
B.Large35.00
 Medium20.00
 Small5.00
 Table Top3.00
CLarge25.00
 Medium15.00
 Small3.00
 Table Top3.00