Ghana Amends Income Tax Rates For Residents

On 31 March 2023, the Parliament of Ghana approved the Income Tax (Amendment) (No.2) Bill 2022¹ which provided for the introduction of an additional top individual income tax bracket with a rate of 35% on income exceeding GHS 600,000.

The table below provides the annual income tax bands and rates generally applicable to the chargeable income of resident individuals:

Year 2023	Chargeable Income GHS	Rate %	Tax Payable GHS	Cumulative Income GHS	Cumulative Tax GHS
First	4,824	0	0	4,824	0
Next	1,320	5	66	6,144	66
Next	1,560	10	156	7,704	222
Next	36,000	17.5	6,300	43,704	6,522
Next	196,740	25	49,185	240,444	55,707
Next	359,556	35	107,866.80	600,000	163,573.80
Exceeding	600,000	35	210,000

These rates took effect from 1st May 2023.

The table below provides the monthly income tax bands and rates generally applicable to the chargeable income of resident individuals:

Year 2023	Chargeable Income GHS	Rate %	Tax Payable GHS	Cumulative Income GHS	Cumulative Tax GHS
First	402	0	0	402.00	0
Next	110	5	5.5	512.00	5.5
Next	130	10	13.00	642.00	18.5
Next	3,000.00	17.5	525	3,642.00	543.5
Next	16,395.00	25	4,098.75	20,037.00	4,642.25
Next	20,000.00	30	8,988.90	50,000.00	13,631.15
Exceeding	50,000.00	35	17,500

These rates took effect from 1st May 2023.

¹1.Pay As You Earn (PAYE) – GRA

It is to be noted that there is no change in the tax rate for non–resident individuals who are taxed at a flat rate.

Please contact your Mercans’ services delivery team for any additional information regarding the implications of the above change

Mercans Recommends

View PDF

Ghana Amends Income Tax Rates For Residents

Size

911.52 KB