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07 August 2018

Ghana amends personal income tax rates

The Parliament of Ghana has passed the Income Tax (Amendment) Act, 2018, Act 973. The Act was assented to by the President on 31 July 2018 and gazetted on 1 August 2018. Consequently, it came into force on 1 August 2018.

The Act was enacted to include a sixth income tax band for individual chargeable income above GHS120,0001 per annum. This band will be subject to tax at the rate of 35%. The revised individual annual chargeable income tax bands are as follows:

 

Chargeable income

Tax rate (%)

1.

First GHS3,132

Nil

2.

Next GHS840

5%

3.

Next GHS1,200

10%

4.

Next GHS33,720

17.5%

5.

Next GHS81,108

25%

6.

Exceeding GHS120,000

35%

The rate applicable to the chargeable income of a nonresident individual for a year of assessment has also been increased to 25%.

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ENDNOTE

1. The average US$/GHS rate as of 3 August 2018 is 4.69505.

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CONTACTS

For additional information with respect to this Alert, please contact the following:

Ernst & Young Advisory Services Limited, Accra

  • Robin McCone
    robin.mccone@gh.ey.com
  • Isaac Sarpong
    isaac.sarpong@gh.ey.com

Ernst & Young Advisory Services (Pty) Ltd., Africa ITS Leader, Johannesburg

  • Marius Leivestad
    marius.leivestad@za.ey.com

Ernst & Young LLP (United Kingdom), Pan African Tax Desk, London

  • Rendani Neluvhalani
    rendani.mabel.neluvhalani@uk.ey.com
  • Byron Thomas
    bthomas4@uk.ey.com

Ernst & Young LLP, Pan African Tax Desk, New York

  • Silke Mattern
    silke.mattern@ey.com
  • Dele A. Olaogun
    dele.olaogun@ey.com

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ATTACHMENT

PDF version of this Tax Alert

Document ID: 2018-5951

 
 

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