Ghana Tax System Overview

• Tax is a mandatory fee imposed by the government.

Ghana Revenue Authority (GRA)

• The GRA mobilizes tax revenue for the government in Ghana.

Income Tax Act, 2015

• This act provides for the imposition of income tax in Ghana.

Pay-As-You-Earn (PAYE)

• PAYE is a system of withholding income tax from employees' payments by employers.

Chargeable Income

• Chargeable income includes income from employment, business, and investments.
• The general corporate tax rate in Ghana is 25%.
• Mining and upstream petroleum companies pay a corporate tax rate of 35%.
• Young entrepreneurs in certain sectors get a 5-year tax holiday.
• The capital gains tax rate in Ghana is 15%.
• The standard Value Added Tax (VAT) rate in Ghana is 12.5%.
• All the following are exempt from VAT Flat Rate Scheme: Agricultural products, medical services, and postage stamps.
• The dividend tax rate in Ghana is 8%.
• Agricultural and industrial plants are exempt from customs import duty tax in Ghana.
• Common External Tariff (CET) is a Common External Tariff.
• The duty rate for final consumer goods under the CET classification system is 20%.
• More foreign direct investments is one benefit of the CET.
• The maximum personal income tax rate in Ghana is 30%.
• The personal income tax rate for income exceeding Ghc20,000 in Ghana is 30%.

Income Tax Exemptions in Ghana

• The following are examples of income tax exemptions in Ghana: Income of cocoa farmers, gain from life insurance and interest, and gains realized by non-resident person on bonds issued by the government.
• Communication Service Tax (CST) is what CST stands for.
• Internet Service Providers are charged with the Communication Service Tax.

Excise Tax

• Bottled water is a product affixed with excise tax stamps in Ghana.
• The environmental excise tax rate in Ghana is 10%.
• The airport tax for local travel in Ghana is GH¢5.
• Communication Service Tax (CST) applies to communications services in Ghana.
• The corporate tax rate charged by the GRA is 25%.
• The mining sector pays a 35% corporate tax rate.
• The withholding tax rate on dividend payments to shareholders is 8%.
• Agricultural products in raw state, medical services and postage stamps are all exempt from charging tax under the VFRS (VAT Flat Rate Scheme).
• The dividend tax rate paid by a resident or non-resident person or partnership is 8%.
• Essential Social Goods has a duty rate of 0% under the Common External Tariff (CET).
• The standard VAT rate is 12.5%.
• Various electronic communications service providers are charged with the Communication Service Tax (CST).
• Various specified excisable goods are affixed with excise tax stamps.
• The excise tax rate on specified plastic and plastic products is 10%.
• Tax contributes to the state's revenue.
• The Ghana Revenue Authority (GRA) is responsible for mobilizing revenue through tax for the government of Ghana.
• Pay As You Earn is what PAYE stands for in the context of income tax.
• Residents are taxed on worldwide income; non-residents are taxed only on income earned in Ghana.

Property Tax

• Property Tax is not administered by the Ghana Revenue Authority (GRA).
• The corporate tax rate charged by the GRA in Ghana is 25%.
• Hotels enjoy a reduced corporate tax rate of 8%.
• Young entrepreneurs get a 5-year tax holiday in certain sectors.
• The withholding tax rate on dividend payments to shareholders is 8%.
• The National Communications Authority (NCA) administers the Communication Service Tax (CST).
• Medicinal plants are not affixed with excise tax stamps, according to the provided material.
• The VAT rate for taxable supplies of goods and services in Ghana is 12%.
• The tax rate imposed on capital gains in Ghana is 15%.
• Final Consumer Goods has a duty rate of 20% under the Common External Tariff (CET).
• Government entities are exempt from paying Communication Service Tax (CST).