Ghana Income Tax Rate 25%
Ghana Corporate Tax Rate 25%
Ghana Sales Tax / VAT Rate 12.5%
Ghana personal tax rates are graduated with rates ranging from 0% to 25%. Annual income up to Cedis 2,400,000 is taxed at 0%. Any income in excess of Cedis 6,000,000 is taxed at 25%. Nonresident individuals pay taxes on their employment income at a rate of 15%.
Individuals are required to pay tax on gains or profit from employment, business or investment. For a resident person, he or she is to pay tax on income accruing in, derived from, brought into, or received in Ghana, and for a non-resident person on income accruing in, and derived from, Ghana whether the income is received in Ghana or not. An individual is considered resident if he or she has stayed in Ghana for an aggregate period of 183 days or more in any 12 month period.
All incomes are aggregated and taxed after the various adjustments relating to the type of income earned are made. The aggregated income excludes capital gains, gifts and rent income.
Unless specifically exempted in the law, companies (both resident and non-resident) are required to pay tax on income relating to business and investment, derived from, accrued in, brought into and received in Ghana after the necessary adjustment are made to it in line with the tax laws. The rate of tax is generally 25%. There are different rates applicable to certain companies (refer to 'Incentives' below). The corporate entity is taxed separately from its share holders.
All companies have to file returns four months after their accounting year. It is also required that they make quarterly tax payment on the current year's income based on provisional assessment made by the IRS or the company itself (where the IRS has granted that permission).
Ghana is not a federation so the national taxes and levies apply in all ten regions of the country.
VAT rate in Ghana is 12.5% on the value of goods and services. This excludes the National Health Insurance Levy of 2.5%. These are indirect taxes paid by consumers on some goods and services to the state through registered individuals or businesses.
Retailers are required to charge a flat rate of 3% (no input or output VAT is computed).
There are exemptions specified in the VAT law. Exempt supplies include agricultural products and inputs, printed matter, approved medical and pharmaceutical supplies, transport, financial services, land, building and construction. Imports are taxable. Exports are zero rated.
Taxable transactions ; VAT is imposed on the supply of goods or services in Ghana and on the import of goods or services. The tax base is generally the amount paid, plus any duties and taxes (excluding VAT). For imports, the tax base is the customs value, plus any import duties and taxes, except VAT.
VAT Registration; A business making taxable supplies of goods in excess of GHC 10,000 over a 12-month period is required to register for VAT purposes. There is no registration threshold for the supply of taxable services.
Filing and VAT payment; A VAT return must be submitted by the last working day of the month immediately following the accounting period to which the return relates.