Personal Income Tax | Local & Expatriate
Income Tax is a tax charged on a person’s income from employment, business and investment. Persons such as employees, self-employed, persons in partnership, shareholders and directors of companies and trustees and beneficiaries of a trust are all charged tax on income earned.
|Check additional tables for schedule|
Corporate Income Tax
It is a tax charged on a company’s total income sources at the end of the company’s accounting income year. Companies pay tax on business and investment income known as gains and profit. This income does not include expenses made while obtaining the income.
It is a tax which is deducted at source by a withholding agent (a person required to deduct tax) when making payment to another person and accounted for later to the GRA. You must be registered to be allowed to withhold tax from business transactions.
|Check additional table to see the rates|
Capital Gains Tax
|Capital Gain Tax is a direct tax levied on gains from realization of capital assets or liabilities.||Corporate Businesses=25%
Hotels = 22%
Companies engaged in non-traditional exports=8%
VAT Registered Taxpayers cannot claim the NHIL & the GETFund charged on their purchases
Goods charged at the VAT Flat Rate of 3% are not subject to the NHIL & GETFund.
The levies are to be charged at every stage that a VAT Standard rated supply is made by VAT Registered Taxpayer.
VAT Registered persons are now to account for NHIL and GETFund on imported services (which include management and technical services, patents, licenses, etc.) on monthly NHIL and GETFund returns.
Items that attract a zero rate of VAT also attract a zero rate of GETFund and the NHIL Levy.
VAT Registered Taxpayers who are on the Standard Rated Scheme (SRS) i.e. Manufacturers & Service providers are to account and pay for NHIL and GETFund.
Inheritance, estate, and gift taxes are not expressly and separately provided for under the tax laws of Ghana.
It is worth noting that a gift received by an individual is included in the assessable income of the individual and taxed at the applicable tax rate of 25% (for non-resident) or the highest marginal rate of 30% (for resident). There is, however, an option to elect and apply a 15% tax on gifts received by an individual if that gift is not in respect of business or employment.
|Business or employment related = 30%(resident)
Non-business or employment related = 15%
A dividend tax is a tax imposed by a jurisdiction on dividends paid by a corporation to its shareholders. The primary tax liability is that of the shareholder, though a tax obligation may also be imposed on the corporation in the form of a withholding tax.
|Dividend withholding tax rate of 8%|
Value Added Tax (VAT) is a tax applied on the value added to goods and services at each stage in the production and distribution chain. It forms part of the final price the consumer pays for goods or services. In some countries it is called ‘Goods and Services Tax’ or GST.
Bilateral Tax Treaties and DTAAs
|Marriage / Responsibility Relief
This relief is granted to a resident individual who takes care of his wife or her husband or takes care of at least two children.
Child Education Relief
This is granted to a resident individual who pays his or her child’s school fees. The relief is granted to a maximum of three children attending any recognized registered educational institution in Ghana. A child under this law includes an adopted child or ward.
Both parents cannot claim this relief in respect of the same child /children.
This is granted to persons who prove to the satisfaction of the Commissioner-General that they are disabled
This relief is granted to disabled persons who receive income from business or employment only.
Old age relief
This relief is granted to persons who are 60 years of age
Aged dependant relative relief
This relief is granted to a resident individual who takes care of a relative who is sixty years old and above.
The relief is granted up to a maximum of two relatives
The relief does not apply to a dependent’s spouse or child
Two persons cannot claim this relief in respect of the same relative.
2. Other Reliefs
A resident individual can also be granted educational relief if that person undergoes training to update his/her professional, technical or vocational skills or knowledge.
Mortgage interest relief is a tax relief based on the amount of qualifying mortgage interest that you pay in a given tax year for your principal private residence and this relief can be enjoyed for only one building.
|The relief is GH¢1,200 per Year
The relief is GH¢600 per Child per Year.
The relief is 25% of the disabled person’s income from business or employment
The relief is GH¢1,500 per Year
The relief is GH¢1,000 per Year.
The relief is GH¢2000 per year.
Small, mountainous, and completely landlocked by South Africa, Lesotho depends on a narrow economic base of textile manufacturing, agriculture, remittances, and regional customs revenue. Lesotho relies on South Africa for much of its economic activity;
Lesotho imports 85% of the goods it consumes from South Africa, including most agricultural inputs. Households depend heavily on remittances from family members working in South Africa in mines, on farms, and as domestic workers, though mining employment has declined substantially since the 1990s.
Lesotho is a member of the Southern Africa Customs Union (SACU), and revenues from SACU accounted for roughly 26% of the total GDP. Lesotho also gains royalties from the South African Government for water transferred to South Africa from a dam and reservoir system in Lesotho. However, the government continues to strengthen its tax system to reduce dependency on customs duties and other transfers. The government maintains a large presence in the economy – government consumption accounted for about 26% of GDP in 2019.
Lesotho’s largest private employer is the textile and garment industry – approximately 36,000 Basotho, mainly women, work in factories producing garments for export to South Africa and the US. Diamond mining in Lesotho has grown in recent years and accounted for nearly 35% of total exports in 2015.