Taxes

Taxes in Ghana

Ghana's tax system applies to both residents and non-residents, with significant differences in treatment. Understanding your status and obligations is essential for compliance.

Tax Residency

Resident Individual:

• Stayed in Ghana for aggregate 183+ days in any 12-month period
• Taxed on worldwide income
• Progressive tax rates apply

Non-Resident:

• Less than 183 days in 12-month period
• Taxed only on Ghana-source income
• Flat 25% rate

Income Tax Rates (Residents)

Progressive Tax Structure (2026):

Examples:

• GHS 60,000 annual income (~$5,450): ~12% effective rate
• GHS 120,000 annual income (~$10,900): ~17% effective rate
• GHS 300,000 annual income (~$27,300): ~23% effective rate

Non-Resident Taxation

Flat Rate: 25% on Ghana-sourced income

Ghana-Sourced Income Includes:

• Employment exercised in Ghana
• Trade/business/profession in Ghana
• Property located in Ghana
• Derived from activities in Ghana

Social Security Contributions

SSNIT (Social Security and National Insurance Trust):

Employee Contribution: 5.5% of basic salary

Employer Contribution: 13% of basic salary

Total: 18.5%

Maximum Insurable Earnings (2025-26): GHS 61,000 annually

Coverage:

• Old age pension
• Invalidity pension
• Survivor's benefit
• Work-related injury compensation

Foreign-Sourced Income

For Residents:

• Foreign income brought into or received in Ghana is taxed
• Worldwide income taxation principle
• Foreign tax credits allowed
• Double taxation agreements (DTAs) may provide relief

DTAs:

• Ghana has tax treaties with several countries
• Prevents double taxation
• Check if your home country has treaty with Ghana

Value Added Tax (VAT)

Standard Rate: 15% (12.5% VAT + 2.5% NHIL + other levies)

Applies To:

• Goods and services
• Imports
• Most consumer purchases

Exemptions:

• Basic food items
• Medical services
• Educational services
• Financial services (some)

PAYE (Pay As You Earn)

Withholding System:

• Employers deduct tax from salaries monthly
• Remit to Ghana Revenue Authority (GRA)
• Employee receives net salary

Components Deducted:

• Income tax
• Employee SSNIT (5.5%)

Other Taxes

Property Tax:

• Based on property value
• Rates vary by locality
• Generally low

Capital Gains Tax:

• Generally not applicable to individuals on most gains
• Some exceptions exist

Vehicle Tax:

• Annual road tax
• Depends on vehicle engine size

Filing and Compliance

Filing Requirement:

• Employed individuals: Usually handled by employer (PAYE)
• Self-employed: Must file quarterly estimates and annual return
• Businesses: Quarterly and annual filings

Tax Year: January 1 - December 31

Filing Deadlines:

• Individuals: April 30 (4 months after year-end)
• Companies: April 30
• Quarterly estimates: Due within one month after quarter

Where to File:

• Ghana Revenue Authority (GRA)
• Online filing available: www.gra.gov.gh

For Expats: Important Considerations

Work Permit Holders:

• Employer usually handles tax compliance
• PAYE deducted from salary
• Verify employer compliance
• Keep tax receipts

Remote Workers:

• If resident (183+ days): All income taxable
• If non-resident: Only Ghana-source income taxable
• Remote work for foreign company from Ghana = gray area
• Consult tax professional

Right of Abode Holders:

• Treated as residents for tax if living in Ghana
• Worldwide income taxable

Tax Identification Number (TIN):

• Required for tax compliance
• Obtain from GRA
• Needed for banking, property, business

Getting Help

Tax Professionals:

• Recommended for expats
• Help with compliance
• Minimize tax liability legally
• Navigate DTAs

Major Firms:

• PwC Ghana
• KPMG Ghana
• Deloitte Ghana
• EY Ghana
• Local accounting firms

Costs: GHS 500-3,000+ ($45-275+) annually depending on complexity

Tips for Tax Planning

Document Everything:

• Keep all income records
• Foreign income documentation
• Foreign tax payment receipts
• Banking transactions

Understand Your Status:

• Track days in Ghana
• Know if you're resident or non-resident
• Status affects tax burden significantly

Use Double Taxation Agreements:

• Check home country treaty
• Claim foreign tax credits
• Professional help recommended

Compliance:

• File on time to avoid penalties
• Keep TIN active
• Respond to GRA queries promptly