Payroll Compliance Updates- Ghana
A. Update

On passing of the amendment of The Income Tax Act, the personal income tax bands and rates for resident individuals have been revised as provided below

Annual
Chargeable income (GHS) Cumulative chargeable income (GHS) Rate of tax
First 3,828 3,828 Nil
Next 1,200 5,028 5%
Next 1,440 6,468 10%
Next 36,000 42,468 17.5%
Next 197,532 240,000 25%
Exceeding 240,000 >240,000 30%

The personal reliefs available to resident individuals have been revised. Please refer the below list of changes:

Description of relief New personal relief per annum (GHS)
Dependent spouse or at least 2 dependent children 1,200
Individual with a disability 25% of assessable income from business or employment
Individual who is 60 years and above 1,500
Individual sponsoring education of child or ward1,3 600
Dependent relative who is 60 years and above, other than a child or spouse2,3 1,000
Training to update the professional, technical or vocational skills or knowledge4 2,000
Notes:

1The amount is for child or ward education in a recognized registered educational institution in Ghana and available per child or ward up to a maximum of 3 children or wards

2The amount available is for dependent relatives up to a maximum of 2 dependent relatives.

3Where two or more persons qualify for the relief in respect of the same child, ward, or relative, the Commissioner-General shall grant only one relief.

4This is the maximum cost of training available as a relief.

B. Statutory Compliance Release Date: December 30, 2019
C. Effective Date: January 01, 2020
 

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