Income Tax Rates In Ghana
An Income tax is a legally imposed tax on the individual’s total income. Income tax rates in Ghana have been a key factor in the development of Ghana and thus, is revised from time to time. Check out some detailed explanations of the general overview of income tax rates and their calculation.
Ghana is a developing country and is regarded as a low middle-income country by the World Bank. The nation depends much on income tax for development of the nation.
The Ghana Revenue Authority is the sole government firm that is mandated to collect and access taxes. It also enforces nations the INCOME TAX ACT, 2015 (ACT 896) As Amended by INCOME TAX (AMENDMENT) ACT, 2015 (ACT 902)1 INCOME TAX (AMENDMENT) ACT, 2016 (ACT 9.
Does Everyone Pay Income Tax?
According to the laws of the state, not everyone pays income tax. Generally, people who do not work to earn income do not pay income tax. Additionally, some workers whose salaries or income does not exceed a certain threshold do not pay income tax. This threshold is also dependent on the age limit and some other factors.
People who live in other countries but receive salaries or income from a business in Ghana are also taxed.
Generally, income taxes are imposed on employees, sole-proprietors, or partners in a partnership business when they earn not less than ¢319.00 monthly.
Income Tax Rates In Ghana: At What Salary Do I Pay Tax?
According to the Ghana Revenue Authority data, the threshold salary that is taxable is ¢319.00 monthly. Anyone who receives an income or salary greater than ¢319.00 on monthly basis will be taxed on his or her income received. Salaries that are above the threshold are taxed relative to the amount range.
Read Also: What You Need to Know about Company Registration in Ghana
How Can I Calculate My Income Tax?
It is quite easy to calculate the amount of your salary that is taxed as income tax. The gross salary is the whole salary of an individual in which some taxes are imposed and at the end of the month. The take-home salary is termed as the net income or net salary. A specific percentage of tax is imposed on the gross income and that amount is calculated as the difference between the gross and net incomes.