Know the new rates of Income Tax contained in Income Tax Act, 2015 (Act 896)
The Ghana Revenue Authority has released the new rates of Income Tax contained in the Income Tax Act, 2015 (Act 896).
According to the Commissioner General of the GRA, the effective date of implementation of the new rates is January 1, 2016 and hence the general public should note for compliance.
Download a copy of the new rates from here
| ENTITY | RATES OF TAX % |
|
Corporate Income Tax |
25 |
|
Company principally engaged in hotel industry |
22 |
|
Chargeable income derived by a financial institution from loan granted to a farming enterprise in production of income enterprise |
20 |
|
Chargeable income derived by a financial institution from loan granted to a leasing company to fund acquisition of assets for lease |
20 |
| Manufacturing business located in regional capitals (except Accra & Tema) | 75% of corporate tax |
| Manufacturing business located outside the regional capitals | 50% of corporate tax |
|
Free zone enterprise/ developers after 10 years in operation |
0 |
|
Free zone enterprise/ developers after 10 years in operation (on export of goods and services) |
15 |
|
Chargeable income of a person from petroleum operations Chargeable income of a person from mineral operations |
35 35 |
| AGRO PROCESSING COMPANIES | RATES OF TAX % |
|
Agro processing business conducted wholly in the country for first 5 years Cocoa by product business conducted wholly in country for the first 5 years Rural banking business for the first 10 years Tree crop farming for the first 5 years Cash crops or livestock (excluding cattle) for the first 5 years Waste processing business for the first 7 years Income derived from letting for sale low cost affordable residential premises approved by Minister of Works and Housing for the first 5 years Chargeable income trust APPROVED UNIT TRUST AND MUTUAL FUND Approved unit trust scheme and mutual fund for the first 10 years Interest or dividend paid to a member of a holder of an approved unit trust or mutual fund Income from qualifying venture capital financing company for the first 10 years Interest or dividend paid or credited to a person on a qualifying investment in a qualifying venture capital financing company for the first 10 years Resident individual
Gain on realisation of investment asset by an individual |
1 1 1 1 1 1 1
1 1 1
20 15 |
WITHHOLDING TAX
| INCOME | RATE (%) | COMMENTS |
|
Resident persons Interest (excluding individuals and resident financial institutions) Interest paid to individual Dividend Rent of residential property (for individuals and as investment income) Rent of non residential property Fees, allowance to resident director / manager, board member, trustee Fees to lecturers, invigilators, examiners, part time teachers, non executive directors / board members and endorsement fees Commissions to insurance agents, sales and persons Commissions to resident lotto receivers or agents Supply of goods exceeding GH Ȼ2,000 p.a Supply of works Supply of services Lottery winnings Payment to petroleum subcontractor Payment for unprocessed precious minerals Royalty, natural resource payment NON RESIDENT PERSONS Income of non-resident individual from employment Dividend Royalties, natural resources payments and rents Management, consulting and technical service fee and endorsement Repatriated Branch after tax profits Interest income Short term insurance premium Endorsement fees Payment of services Goods, works and services that give rise to income accruing in or derived from Ghana (That is trading in Ghana(i.e. where a Permanent Establishment exists) as against with Ghana) Petroleum sub contractor Payments received by person who conducts a relevant transport business as payment for Payments received by a person who conducts a business of transmitting or receiving messages by cable, radio, optical fibre or satellite or electronic communication in respect of the transmission, reception or emission of messages by an apparatus located in the country, whether or not the messages originate, terminate or are used in the country; |
1 8 8 15 20 10 10 10 3 5 15 5 15 10 15
20 8 15 20 8 8 5 20 20 20
15 |
Final tax Final tax Final tax On Account Final
On Account On Account On Account On Account Final Final On Account On Account
Final Final tax Final tax Final tax Final tax Final tax Final tax Final tax Final tax Final tax
Final |