Ghana Amends Income Tax Rates For Residents
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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
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