Here’s a scenario many Ghanaian employees face: you notice PAYE deductions on every payslip, yet when you check your Ghana Revenue Authority (GRA) taxpayer portal, there are no tax credits to show for it. It is frustrating, confusing, and unfortunately more common than it should be. The money has left your employer’s account, but as far as the tax system is concerned, you never paid anything. This disconnect between payroll deductions and tax credits creates headaches for everyone involved. Employees lose out on legitimate tax benefits, while employers find themselves scrambling to fix filing errors that could have been prevented. Understanding how tax credits work and why they sometimes disappear into the system can save both parties significant time and stress.
How Tax Credits Should Work (When Everything Goes Right)
Think of tax credits as tax payment on account of your annual tax liability. When your employer deducts PAYE taxes, bonus taxes, or other withholding taxes from your salary, that money should automatically appear as a credit on your GRA portal once the proper returns are filed. These credits then work in your favor by reducing your annual personal income tax liability, offsetting any assessments, or in some cases, qualifying you for refunds. The process works seamlessly when employers file returns correctly and on time. Your deductions translate directly into credits you can actually use. But when something goes wrong in the filing process, those deductions essentially vanish from your tax record.
Where Things Go Wrong
The most common culprits behind missing tax credits are surprisingly straightforward filing errors. Sometimes employers pay the tax but forget to file the corresponding return – imagine making a bank deposit without filling out a deposit slip. Other times, returns get filed under the wrong period, such as reporting December bonuses under January, which throws off the entire credit allocation system.
One particularly problematic issue involves missing or incorrect Ghanacard numbers on returns. Without proper identification numbers, the GRA system simply cannot match tax payments to individual employees, leaving credits floating in limbo. Bonus and excess bonus taxes are especially vulnerable to filing oversights, often getting paid but never properly reported.
The Legal Reality of Filing Mistakes
Here is where things get more complicated. Under Section 32(2) of the Revenue Administration Act, 2016, employers cannot simply go back and correct filing errors after the statutory deadline without formal permission from the GRA. This means that discovering you filed January bonuses under the wrong month or omitted employee identification numbers is not something you can quietly fix with a quick amendment. Instead, employers must formally request permission to amend returns, explaining the nature of the error and providing supporting documentation. While the GRA is generally reasonable about genuine mistakes, the process adds time and administrative burden that could have been avoided with careful initial filing.
Preventing the Problem Before It Starts
1. File Returns Timely and Accurately
Ensure that every PAYE and bonus tax return is submitted on time, using the correct tax period corresponding to when the payment was made.
2. Validate Employee Ghana Card Numbers
Before filing, cross-check that each employee’s Ghanacard is correct.
3. Reconcile Payroll With GRA Records
Periodically download the Employee Tax Credit Report from the taxpayer portal and match it against payroll tax deductions. Identify gaps early and correct them before the year-end filing season.
4. Seek GRA Permission When Necessary
If a filing error is detected after the statutory deadline, immediately write to GRA seeking
permission to amend the return. Explain the nature of the error and provide relevant payment
Why This Matters Beyond Compliance
For employees to truly benefit from the taxes paid on their behalf, employers must go beyond just paying to properly filing tax returns. A payment without a return is like a bank deposit without an account number, it goes nowhere.
Maintaining accuracy in the PAYE and bonus tax processes is not just a compliance requirement but a responsibility to the workforce. It builds trust, ensures fairness, and keeps your organisation in good standing with both employees and the tax authority.