Tax laws Ghana

20 May 2025 --
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Ghana's tax system is structured to generate revenue for national development, administered primarily by the Ghana Revenue Authority (GRA). Below is an overview of the key tax laws and recent amendments in Ghana:

1. Personal Income Tax (PIT)

Progressive Tax Rates: Individuals are taxed at progressive rates, with higher income brackets subjected to higher rates.
Taxable Income: Includes salaries, wages, bonuses, and other employment benefits.
Filing Requirements: Individuals earning income beyond a certain threshold are required to file annual tax returns.

2. Corporate Income Tax (CIT)

Standard Rate: The corporate tax rate is 25% on taxable profits.
Sector-Specific Rates: Certain industries, such as mining and petroleum, may have different tax rates or additional levies.

3. Value Added Tax (VAT)

Standard Rate: The VAT rate was increased from 12.5% to 15% as per the Value Added Tax (Amendment) No. 2 Act, 2022 (Act 1087).
Scope: VAT applies to the supply of goods and services, including imports.
Exemptions: Certain goods and services, such as medical supplies and financial services, may be exempt.

4. Electronic Transfer Levy (E-Levy)

Rate Reduction: The E-Levy rate was reduced to 1% on applicable electronic transactions, as per the Electronic Transfer Levy (Amendment) Act 2022 (Act 1089).
Scope: Applies to electronic transactions, including mobile money transfers and bank transfers.

5. Withholding Tax (WHT)

Applicable Payments: Includes payments for services, dividends, interest, and rent.
Rates: Vary depending on the nature of the payment and the recipient's residency status.

6. Capital Gains Tax

Rate: Gains from the sale of capital assets are taxed at 15%.
Exemptions: Certain transactions, such as transfers between spouses, may be exempt.

7. Stamp Duty

Scope: Levied on specific instruments, including conveyances and leases.
Rates: Vary based on the type and value of the instrument.

8. Customs and Excise Duties

Import Duties: Charged on goods imported into Ghana, with rates depending on the product classification.
Excise Duties: Applied to specific goods, such as alcoholic beverages and tobacco products.

9. Recent Amendments and Initiatives

Revenue Administration (Amendment) Act, 2022 (Act 1086): Empowers the Commissioner-General to establish monitoring systems to verify taxpayer revenue and imposes penalties for non-compliance.
Digitalization Efforts: The GRA has implemented the Uni-Pass clearance system to streamline customs processes and enhance revenue collection.
Informant Reward Scheme: Encourages the public to report tax evasion and fraud, with rewards for information leading to tax recovery.

10. Tax Policy Environment

Collaboration: The GRA works with the Tax Policy Unit of the Ministry of Finance to formulate effective tax policies.
Taxpayer Segmentation:
- Large Taxpayers: Annual turnover exceeding GH¢5 million or operating in specialist industries.
- Medium Taxpayers: Annual turnover between GH¢90,000 and GH¢5 million.
- Small Taxpayers: Annual turnover below GH¢90,000.

Ghana's tax laws are subject to periodic amendments aimed at enhancing revenue collection and compliance. For the most current information, it is advisable to consult the Ghana Revenue Authority or a tax professional.