Frequently Asked Questions


PAYE should be filed before or by 15th day of the immediate month following the assessment month.

Withholding Tax should also be filed before or by the 15th day of the immediate month following the assessment month.
Failure to pay on due date attracts an interest of 125% of the statutory rate, compounded monthly on the outstanding tax

VAT/NHIL should be filed before or by the last working day of the immediate month following the month of assessment

Annual Returns should be filed before or by the end of the fourth month following the 12-month accounting period of the business.

Pay As You Earn (PAYE) is the routine deduction of tax from emoluments of employees by their employers, each time employees are paid.

INCOME                             RATE
First   319                                 Nil
Next  100                                 5%
Next  120                                 10%
Next  3,000                         17.5%
Next  16,461                             25%
Exceeding  20,000             30%

All allowances are subject to tax except the following:
=> A reimbursement or discharge of a person’s dental, medical or health insurance expenses where the benefit is available to all full-time employees on equal terms
=> A passage to or from Ghana in respect of the appointment and termination of employment of an employee who
=> Is recruited or engaged outside Ghana
=> Is in Ghana for a purpose of serving the employer
=> Is not a resident of Ghana

i. Deduct 5.5 percent Social Security from basic salary
ii. Add all allowances after the 5.5 percent Social Security deduction
iii. Deduct applicable personal tax relief(s)
iv Use the appropriate tax table to compute the tax on the remainder( i.e. Chargeable income.) 

Bonus up to 15 percent of basic salary is taxed at 5%. Anything in excess is added to the salary and taxed at the normal rate.

Yes, An employee can apply for personal tax relief(s) to the GRA through his primary employer by completing a Tax Relief Application Form.

The Employer files a Return of Income on behalf of the Employee. However, the Commissioner can by regulation request an employee to furnish a Return of Income if the employee has other sources of income e.g. rent, part-time job or other business income. Additionally, all employees who have more than one employment income are required to file a return at the end of the year

Yes, record keeping is incumbent on all Employers and employees with other sources of income

Right to Help and Information
Right to Courtesy and Consideration
Fairness and Transparency
Independent Appeal and Review
Right to claim refund of ascertained taxes overpaid
Right to claim all personal reliefs upon the satisfaction of all laid down conditions
Privacy and Confidentiality

Individuals are considered residents in Ghana if they have been in Ghana for at least 183 days in a 12 month period that begins/ends during the year of assessment.

An employee or official of the government of Ghana posted abroad during the year of assessment

A citizen with a permanent home in Ghana who is temporarily absent from Ghana for no longer than 365 successive days

A company is resident for tax purposes if that company:
is incorporated under the laws of Ghana, or
has its management and control exercised in Ghana at any time during the year.

A body of persons is a resident body of persons if that body of persons is:
established in Ghana
has a resident person as a manager at any time during the year of assessment or
controlled directly or indirectly by a resident person or persons at any time during the year.

A partnership is resident for tax purposes if at any time during the year, any partner in the partnership is resident in Ghana.

A resident individual is liable to tax on all income from his employment in Ghana regardless of where paid. A resident person or an expatriate who is paid both in Ghana Cedis and foreign currency is liable to tax in Ghana on both streams of income, in addition to any benefits derived from the exercise of the employment in Ghana.
However, Section 112(1) of the Income Tax Act 2015, (ACT 896) allows you to claim a foreign tax credit that a resident person might have paid to the foreign country subject to sub-section (2) to (4).

A non-resident individual is liable to tax at the rate of 20% on any income derived in Ghana or which accrues to him from an employment exercised in Ghana. This rate applies to income earned by a non-resident individual who has stayed in Ghana for a period or periods, which in total is less than 183 days in a twelve-month period.

Failure to register - Up to twice the amount of tax on taxable supplies until the
application is filed

Failure to issue (proper) tax invoices - Up to GHS 1,200, plus the higher of GHS 500 and triple the amount of tax

Late filing of VAT return - GHS 500 plus an additional GHS 10 per day

Making a claim for a refund which you are not entitled to - Twice the original refund request, plus interest

Late payment of tax - 125% of the Bank of Ghana monetary policy rate, compounded monthly, and applied to the amount outstanding

General penalty - Up to three times the amount of tax involved

1. Agricultural inputs;

2. Water, excluding bottled or packaged water;

3. Electricity within specified limits;

4. Textbooks, approved supplementary readers, newspapers, atlases, charts, maps and music;

5. Education services, and laboratory and library equipment for use in rendering such services;

6. Medical services and medical supplies;

7. Certain pharmaceuticals, active ingredients and selected inputs;

8. Domestic transportation;

9. Machinery and parts of machinery designed for use in certain specified activities;

10. Crude oil and hydrocarbon products;

11. Accommodation in a dwelling, or land for agricultural use and civil engineering public works;

12. Goods specifically designed for the disabled;

13. Financial services;

14. Imported plant and machinery designed specifically for use in the automobile industry and kits by an automobile manufacturer or assembler subject to meeting certain conditions;

15. Management fees charged by local fund managers for management of a licensed private equity fund, venture capital fund or a mutual fund.


It is the formal registration of the business at the Registrar-General’s Department and thereafter at the Tax Office.

Any person who carries on any business is required to register with the Commissioner.

Yes. The registration at the Registrar-General’s is compulsory for all companies and partnerships but optional for sole-proprietors. However, all businesses including sole proprietors must register with the tax authorities.

The first step in registering a business is to apply to the Registrar-General’s Department with the following details:
      Name of business/company
      Name of the owner(for sole-proprietorship)
      Name of partners(for partnership)
      Nature of the business
      Location and address of the business
      Date of commencement of the business

Registration with the IRS is a requirement under the Internal Revenue (Registration of Business) Act,2005 (Act 684) which states “A person shall not carry on any business unless that person has registered the business with the Commissioner” and paid the registration fees as specified.
This is a one- time registration in the life of the business.


A VAT Flat Rate Scheme (VFRS) is a VAT collection and accounting mechanism under which a registered taxpayer who is a retailer or wholesaler of goods applies a marginal VAT & NHIL rate of 3%, representing the net VAT payable on the value of taxable goods supplied.

It does not cover the supply of any form of power, heat, refrigeration or ventilation

The VFRS is restricted to wholesalers (including importers) and retailers of taxable goods and does not cover manufacturers, service providers, etc. as provided for by section 3(2) of VAT Act ) 870 as amended by VAT (amendment) Act, 2017 (Act 948).

The VFRS applies a marginal tax percentage of 3% on the value of taxable goods supplied. This becomes the net VAT/NHIL payable by the tax payer. The VFRS does not therefore allow recovery of input tax.

Migrated Taxpayers having outstanding VAT credit balance with the Commissioner General which is as result of input taxes on unsold stocks of goods, are to recover such credits as part of their cost build up to the selling prices of the unsold stocks of goods.

Unused Commissioner General’s Standard Rate Scheme (SRS) VAT invoice booklets should be sent to the local tax office of the Taxpayer to be replaced with VFRS invoices at NO COST.

You are to account for VAT using the standard rate of 17.5 percent for the services rendered and 3 percent for the goods retailed.

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