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).
- 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.
- 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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