AMENDMENTS TO THE INCOME TAX ACT, (ACT 896) 2020 / 2021

The Ghana Revenue Authority wishes to inform the general public that following the passage of the Income Tax (Amendment) (No. 2) Act, 2018 (Act 979), the following amendments have been made to the Income Tax Act, 2015 (Act 896).

The Income Tax Amendment) (No. 2) Act, 2018 (Act 979) has provided for new rates applicable to Resident Individuals. The new rates are:

Table of Contents

A. ANNUAL INCOME

ANNUAL INCOME TAX RATES APPLICABLE TO RESIDENT INDIVIDUALS

CHARGEABLE INCOME	RATE	TAX	CUMULATIVE CHARGEABLE INCOME	CUMULATIVE TAX
GH₵	%	GH₵	GH₵	GH₵
First 3,456	Nil	–	3,456	–
Next 1,200	5	60	4,656	60
Next 1,680	10	168	6,336	228
Next 36,000	17.5	6,300	42,336	6,528
Next 197,664	25	49,416	240,000	55,944
Exceeding 240,000	30

B. MONTHLY INCOME

MONTHLY INCOME TAX RATES APPLICABLE TO RESIDENT INDIVIDUALS

CHARGEABLE INCOME	RATE	TAX	CUMULATIVE CHARGEABLE INCOME	CUMULATIVE TAX
GH₵	%	GH₵	GH₵	GH₵
First 288	Nil	–	288	–
Next 100	5	5	388	5
Next 140	10	14	528	19
Next 3,000	17.5	525	3,528	544
Next 16,472	25	4,118	20,000	4,662
Exceeding 20,000	30

The schedules above are the annual and monthly Personal Income Tax Rates applicable to Resident Individuals. These are the rates that should be used to compute the tax for self-employed persons and Pay As You Earn (PAYE) for salaried workers / employees.

2. Sub section 10 of section 116 of Act 896 provides for the taxation of supply of goods, works or services by non-residents. The tax rates for the supply of goods, works or services by non-residents is twenty percent (20%) in accordance with paragraph 8 (1) (c) (ix) of the first schedule of Act 896.

These amendments came into force effective 1^st January, 2019.

The general public particularly the self-employed, employers, employees, accountants, auditors, paymasters and tax consultants must take note and comply.

COMMISSIONER-GENERAL

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