Obviously, almost everyone is mandated to pay his or her tax as a Ghanaian citizen.
Take note, Ghana’s tax law has equally made provisions for certain individuals or sectors, in order to subside their tax burdens through the Income Tax Exemptions And Personal Tax Reliefs package.
This article is designed to expose you to “all that you need to know about tax exemptions in Ghana”.
Key Sections Of The Post
Before you jump right into the depth of the article, first skim through the main sections of this post:
- Get To Know The Exact Meaning Of Tax.
- Get To Know More About Ghana Revenue Authority (GRA).
- Types Of Taxes In Ghana.
- Tax Exemptions In Ghana And etc.
Others also refer to it as: Revenue Enhancement or Taxation.
Simply put, Taxes are charges that are usually of money imposed by authorities on persons, property or activities, for the support of the Government.
About Ghana Revenue Authority (GRA)
The Ghana Revenue Authority (GRA) was founded in 2009 as a consolidator of the three (3) revenue agencies ( Customs, Excise and Preventive Service (CEPS), the Internal Revenue Service (IRS), the Value Added Tax Service (VATS) and, the Revenue Agencies Governing Board, RAGB ) in conformance with the Ghana Revenue Authority Act 2009, (Act 791).
The Ghana Revenue Authority is composed of two operational divisions and they are:
- Domestic Tax Revenue Division (DTRD)
- Customs Division (CD) with aid from the Support Services Division (SSD) and, the Commissioner General’s Secretariat.
Types Of Taxes In Ghana
With the Withholding Tax, a tax is been subtracted at a source by a withholding agent (someone mandated to deduct the tax) when making payment to another person.
For instance: withholding by an employer, withholding from investment returns, withholding from supply of goods, service fees and contract payments, etc.
The withholding agent then pays the monies deducted, to the GRA.
Corporate Income Tax
The Corporate Income Tax is a tax charged on a company’s sum total income sources, following the end of the company’s accounting income year.
Mineral Royalties Tax
The Minerals And Mining Operations Tax (Mineral Royalty), is a tax imposed on the income of persons involved in mineral operations.
Communications Service Tax
Vehicle Income Tax
Value Added Tax
Tax Exemptions In Ghana
This includes tax incentives and, special dispensations made available for certain industries.
This initiative was laid down to inspire individuals to channel their investments in such sectors, location or industries.
The Income Tax Exemptions and Personal Tax Reliefs Are:
- Agro-Processing Sector
- Manufacturing companies
- Products Specific Tax Incentive
|Sector/ Business||Period of Tax Holiday|
|Agro processing business conducted wholly in the country||First Five (5) years|
|Cocoa-by product business wholly in the country||First Five (5) years|
|Cash crops or livestock (excluding cattle)||First Five (5) years|
|Real Estate (certified low cost housing)||First Five (5) years|
|Tree crop farming||First Ten (10) years|
|Cattle Farming||First Ten (10) years|
|Rural Bank||First Ten (10) years|
|Waste processing business||First Ten (7) years|