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Workers earning GH¢365 salary won’t pay tax – GRA

Source The Ghana Report

The Ghana Revenue Authority (GRA) has indicated that Ghanaians who earn GH¢365 and below as monthly salary will not be taxed.

The authority in a tweet explained that the move was because of the amendment of the Income Tax Act, 2021 (Act 1071).

“We are happy to inform you that, with the amendment (no. 2) of the Income Tax Act, 2021 (Act 1071), any employee (worker) who receives Gh¢365 and below as monthly salary or Gh¢ 4,380.00 as annual salary is taxed at 0%,” it said.

The Act is “to amend the Income Tax Act, 2015 (Act 896) to review the rates of income tax for individuals; to reduce the withholding tax rate for sale of unprocessed gold by small scale miners; to increase the threshold for an individual to whom the presumptive tax under the Modified Taxation Scheme applies; to extend the Covid-19 concessions granted in 2021 for further six months in 2022 and to provide for related matters”.

The Act was assented to by President Nana Akufo-Addo on December 30, 2021, after it was passed by Parliament.

Income tax is usually levied each year on the income of both resident and non-resident persons. Resident persons are taxed on their worldwide income while non-resident persons are taxed on income that has a source in Ghana.

Generally, income has a source in Ghana if it accrues in or is derived from Ghana.

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