May 9, 2023 1 min read

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 2023Chargeable Income GHSRate %Tax Payable GHSCumulative Income GHSCumulative Tax GHS
First4,824004,8240
Next1,3205666,14466
Next1,560101567,704222
Next36,00017.56,30043,7046,522
Next196,7402549,185240,44455,707
Next359,55635107,866.80600,000163,573.80
Exceeding600,00035210,000

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 2023Chargeable Income GHSRate %Tax Payable GHSCumulative Income GHSCumulative Tax GHS
First40200402.000
Next11055.5512.005.5
Next1301013.00642.0018.5
Next3,000.0017.55253,642.00543.5
Next16,395.00254,098.7520,037.004,642.25
Next20,000.00308,988.9050,000.0013,631.15
Exceeding50,000.003517,500

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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