How to file tax returns in Ghana
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How to file tax returns in Ghana

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Filing tax returns is a constitutional mandatory right of every citizen earning income in Ghana.

Every employer must deduct monthly taxes from each employee’s total emoluments and remit any taxes due within 15 days after the end of the month.

Employers must file a return of income for all their employees working in Ghana no later than 31 March following the end of every year of assessment.

What is tax returns?

Completing documentation that calculates an entity or individual’s income earned and the amount of taxes to be paid to the government or government organizations, or potentially back to the taxpayer, is known as filing a tax return. The government considers taxation as one of its biggest sources of income.

For example, individuals, Companies, Entities, and all taxpayers whose accounting year ends on 31st December are to submit their Annual Return of Income for the year of assessment and other outstanding returns by 30th April,

How is tax calculated on salary in Ghana?

If you earn GH₵ 500,000 a year while living in Ghana, the government will tax you GH₵ 152,957, which results in a net pay of GH₵ 347,043 annually or GH₵ 28,920 each month. Your average tax rate is 30.6%, and your marginal tax rate is 33.9%.

What percentage of tax is deducted from salary in Ghana?

The percentage of tax deducted from salary in Ghana depends on the chargeable income. The personal income tax rates are as follows:

  • 10.0% for the next GHS 1,560
  • 17.5% for the next GHS 36,000
  • 25.0% for the next GHS 196,740
  • 30.0% for any amount exceeding GHS 240,000.

Personal Tax Relief

The government grants relief to resident individuals to help reduce their tax burden. A resident individual can request this relief by completing a prescribed form and submitting it to the Commissioner-General. The relief is based on the personal situation outlined in the application form.

Marriage Responsibility Relief

The government grants the Marriage Responsibility Relief to resident individuals who support their spouse or at least two children. This relief amounts to GH¢1,200 per year.

Child Education Relief

This relief is applicable to a maximum of three children and includes adopted children or wards. Only one parent can claim this relief for each child; the amount granted is GH¢600 per child per year.

Disability Relief

The relief is 25% of the disabled person’s income from business or employment.

Olde Age Relief

The government grants relief to individuals who are 60 years of age and above. This relief amounts to GH¢1,500 per year.

How to file tax returns in Ghana online

  1. Taxpayers are required to file their tax returns.
  2. Taxpayers must use the Ghana.gov platform to file their tax returns electronically.
  3. The Ghana.gov platform can be accessed online or through the GRA website, www.gra.gov.gh.

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