FEBRUARY 2020 – GHANA
CHANGES TO TAX RATES
It is important that employers note the following:
New tax rates, effective 1 January 2020
Following the 2020 Budget speech delivered in November 2019, the proposed personal income tax bands for resident individuals have been revised by the Income Tax (Amendment) Act, 2019 (Act 1007).
The personal income tax bands for resident individuals have been revised to align with the tax-free income threshold to the current minimum wage of GH₵3,828 per annum (GH₵319 per month).
Note that the flat tax rate applicable to income derived by non-resident individuals remains unchanged at 25%.
The monthly income tax bands applicable to resident individuals are:
The limits for some of the personal reliefs have increased as follows:
- Marriage or responsibility relief – increased from GH₵200 to GH₵1,200.
- Child education relief – increased from GH₵200 to GH₵600.
- Aged dependent relative relief – increased from GH₵100 to GH₵1,000.
- Old age relief – increased from GH₵200 to GH₵1,500.
- Training and self-improvement – increased from GH₵400 to GH₵2,000.
Contact our legislation team at email@example.com if you require any additional information.
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