Ghana - Revision of Income Tax Rates - effective 1 January 2024
On the 29th of December 2023 the Ghanaian Parliament has passed the amendment of the Income Tax Act, 2015 (Act 896) under Income Tax Amendment (No 2) Act 2023, Act 1111, by revising the income tax rates for individuals to complement the increase in minimum wage.
Although these amendments to the Taxation Laws have been assented to by the President of the Republic of Ghana, the Ghana Revenue Authority (GRA) have informed us that an effective date must still be published. Therefore, the implementation of these amendments will be pending until an effective date is determined.
Previous tax table
|
No.
|
Chargeable Income
|
Rate of Tax
|
|
1.
|
First GH¢ 4 824
|
0%
|
|
2.
|
Next GH¢ 1 320
|
5%
|
|
3.
|
Next GH¢ 1 560
|
10%
|
|
4.
|
Next GH¢ 36 000
|
17.5%
|
|
5.
|
Next GH¢ 196 740
|
25%
|
|
6.
|
Next GH¢ 359 556
|
30%
|
|
7.
|
Exceeding GH¢600 000
|
35%
|
New Tax Rates as of 1 st January 2024:
|
No.
|
Chargeable Income
|
Rate of Tax
|
|
1.
|
First GH¢ 5 880
|
0%
|
|
2.
|
Next GH¢ 1 320
|
5%
|
|
3.
|
Next GH¢ 1 560
|
10%
|
|
4.
|
Next GH¢ 38 000
|
17.5%
|
|
5.
|
Next GH¢ 192 000
|
25%
|
|
6.
|
Next GH¢ 366 240
|
30%
|
|
7.
|
Exceeding GH¢605 000
|
35%
|
According to the Act, the last bracket remains GH¢600,000.00. However, we have received communication from the GRA to use 605,000.00 for the 7th rate band to be taxed at 35%. The rectification will be done by the Parliament of Ghana, this may take some time before the adjustment document becomes available.