Ghana Tax Rates & Key Compliance Information

Here is a summary of all the essentials

Based on the most up-to-date law

(as at January 2025)

Income Tax Rates

  • General CIT rate - 25%

    Mineral & Mining Operations CIT rate - 35%

    Petroleum Operations CIT rate - 35%

    Hotel Industry CIT Rate - 22%

    Lottery Operations - 20% (of gross gaming revenue)

    Minimum Chargeable Income - 5% of turnover

  • Manufacturing companies located in regional capitals (outside Accra & Tema) - 18.75%

    Manufacturing companies located outside regional capitals - 12.5%

    Financial Institutions (Income from Farming & Lease Financing) - 20%

    Companies engaged in the export of non-traditional goods - 8%

    CIT Rate for Trusts - 25%

    Financial Sector Recovery Levy - 5% of Profit before Tax (payable only by specified banks)

    Growth and Sustainability Levy

    • Category A entities - 5% of Profit before Tax

    • Category B entities - 1% of Gross Production

    • Category C entities - 2.5% of Profit before Tax

  • Income Tax Rate (1st 10 years) - 0%

    Income Tax Rate on export sales (after 1st 10 years) - 15%

    Income Tax Rate on domestic sales (after 1st 10 years) - 25%

  • Resident Individuals - Annual Rates

    First 5,880 - 0%

    Next GHS 1,320 - 5%

    Next GHS 1,560 - 10%

    Next GHS 38,000 - 17.5%

    Next GHS 192,000 - 25%

    Next GHS 366,240 - 30%

    Exceeding GHS 600,000 - 35%

    Non-Resident Individuals are taxed at a flat 25%

    Casual workers are taxed at the rate of 5%

    Individuals may elect to tax the below at the rate of 25%

    • some gifts; and

    • gains from the realisation of investment assets

  • A significant majority of temporary concession beneficiaries enjoy a 5% income tax rate (typically between 5 and 10 years)

    After the concession period ends, some of these temporary concession beneficiaries also enjoy reduced income tax rates based on their location within the country

Withholding Tax Rates

  • Subject to an annual cumulative GHS 2,000 threshold, the applicable rates are:

    Goods - 3%

    Works - 5%

    Services - 7.5%

  • Dividend - 8%

    Interest (excluding individuals and resident financial institutions) - 8%

    Winnings from Lottery - 10%

    Rent (Residential Property) - 8%

    Rent (Non-Residential Property) - 15%

  • Fees for examiners, invigilators, supervisors of examination, or part-time teaching or lecturing - 10%

    Fees or allowances to a resident director, manager, trustee or board member - 20%

    Endorsement Fees to Individuals - 10%

    Commission to insurance, sales, canvassing and lotto agents - 10%

    Consideration received on the realisation of an asset or a liability - 3%

  • Natural resource payments and royalties - 15%

    Payment for unprocessed precious minerals - 1.5%

    Payment to Petroleum Sub-Contractors - 7.5%

  • Dividend and Interest (subject to Double Tax Treaty Rates) - 8%

    Management & Technical Service Fees - 20%

    Royalty, Natural Resource Payments & Rents - 15%

    General Insurance Premiums - 5%

    Payment to Petroleum Sub-contractors - 15%

    Income from Telecommunication & Transport Business - 15%

    Goods, Works & Services - 20%

    Branch Profit Tax - 8%

    Consideration received on the realisation of an asset or a liability - 10%

Special Tax Provisions - Individuals

  • Marriage/Responsibility Relief - GHS 1,200

    Disability Relief - 25% of Assessable Income

    Old Age Relief (self - 60+ years) - GHS 1,500

    Aged Dependent Relief (60+ years) - GHS 1,000 per dependent (up to maximum of 2)

    Child Education Relief - GHS 600 per child/ward (up to a maximum of 3)

    Training Relief - GHS 2,000

    The above are all annual amounts

  • Accommodation with Furnishing - 10% of TCE

    Accommodation Only - 7.5% of TCE

    Furnishing Only - 2.5% of TCE

    Shared Accommodation - 2.5% of TCE

    *TCE - Total Cash Emoluments

  • Driver and Vehicle with Fuel - 12.5% of TCE, capped at GHS 1,500 per month

    Vehicle with Fuel - 10% of TCE, capped at GHS 1,250 per month

    Vehicle Only - 5% of TCE, capped at GHS 625 per month

    Fuel Only - 5% of TCE, capped at GHS 625 per month

    *TCE - Total Cash Emoluments

  • Interest on an individual’s mortgage is deductible in ascertaining the income of that individual

    The deduction is available for only one mortgaged residential premises over the entire lifetime of the individual

  • Interest on loans granted by employers to their employees at less-than-market interest rates is quantified and taxed where any of the below conditions is not met:

    (i) the loan is from an employer to an employee,

    (ii) the term of the loan does not exceed 12 months, and

    (iii) the aggregate amount of the loan and any similar loan outstanding at any time during the previous 12 months does not exceed 3 months basic salary

Special Tax Provisions - Companies/Businesses

  • Class 1 - 40% Reducing Balance

    Computers and data handling equipment with peripheral devices

    Class 2 - 30% Reducing Balance

    i) Automobiles, trailers, construction and earth-moving equipment, plant and machinery used in manufacturing

    ii) Plantation capital expenditure

    Class 3 - 20% Reducing Balance

    Locomotives, water transportation equipment, aircraft, office furniture and fixtures. Also included is Equipment not included in another class

    Class 4 - 10% Straight Line

    Buildings, structures and works of a permanent nature

    Class 5 - Useful Life

    Intangible Assets

  • All businesses can carry forward unrelieved losses for 5 years

  • Repairs and improvements expenditure allowable as a deduction cannot exceed 5% of the year-end written down value of the pool to which that asset belongs

    Any excess disallowed expenditure is capitalised in the same pool of assets and granted capital allowance

  • Subject to some exceptions, the amount of financial cost deductible for a year of assessment is restricted based on a predetermined formula

    Any excess disallowed expenditure arising from the above may be carried forward for 5 years

Indirect Tax Rates

  • VAT Standard Rate - 15%

    National Health Insurance Levy - 2.5%

    Ghana Education Trust Fund Levy - 2.5%

    COVID-19 Health Recovery Levy - 1%

    VAT Flat Rate - 3%

    Withholding VAT Rate - 7%

  • CST applies at the rate of 5%

  • Excise Duty Rates range between 0% and 175% for specified excisable goods

    The tax base is the ex-factory price

  • Import Duty - Between 0% and 35% on the CIF Value

    VAT - The rates specified under the “VAT” section apply to imports, unless specifically exempted

    Selected Import Levies

    ECOWAS Levy - 0.5%

    AU Import Levy - 0.2%

    EXIM Levy - 0.75%

    Special Import Levy - 2%

    Please note, this list is far from exhaustive

  • Sanitation & Pollution Levy - GHS 0.10 (10 pesewas) per litre of petrol and diesel

    Energy Sector Recovery Levy - GHS 0.20 (20 pesewas) per litre of petrol and diesel, and GHS 0.18 (18 pesewas) per kg of LPG

    Environmental Tax - 10% on selected plastics and plastic products

    *Electronic Transfer Levy (E-Levy)

    E-Levy at the rate of 1% applies to electronic money transfers (subject to some thresholds and general exempted transactions)

    *Technically not an Indirect Tax (by design)

Some Tax Compliance Reminders

  • Monthly Withholding Tax Return - 15th day of the subsequent month

    Monthly Employer Pay As You Earn (PAYE) Return - 15th day of the subsequent month

    Employer’s Annual Tax Deduction Schedule - 4 months after the end of the calendar year

    Annual Personal (Individual) Income Tax Return - 4 months after the end of the calendar year

    Quarterly Company Income Tax Self Assessment - Before the 3rd, 6th, 9th and 12th month after the start of the accounting year

    Annual Company Income Tax Return - 4 months after the end of the accounting year

    Tax Return on the Realisation of Assets and Liabilities - 30 days after realisation

  • Value Added Tax - last working day of the next month

    National Health Insurance Levy, GETFund Levy, COVID-19 Health Recovery Levy - last working day of the next month

    Withholding VAT - 15th day of the next month

    VAT and Levies on Imported Services - 21st day of the next month

    Communication Service Tax - last working day of the next month

    Excise Duty Return - 21st day of the next month

  • Interest for Late Payment of a Tax - Interest is payable at 125% of the Bank of Ghana Monetary Policy Rate, compounded monthly

    Penalty for Late Filing of Return - GHS 500 plus GHS 10 for each additional day of non-compliance

    Penalty for Late Filing of Return (for Communication Service Tax) - GHS 2,000 plus GHS 500 for each additional day of non-compliance

    Note: There are several other penalties for non-compliance of different tax laws

  • General Registration Threshold - GHS 200,000 in taxable supplies over a 12-month period (or the applicable quarterly equivalent)

    Different VAT registration threshold rules exist for Promoters of Public Entertainment, Auctioneers and specified Government authorities or bodies)