Ghana
Non-Residents Non-resident individuals pay taxes on their employment income at a rate of 15%.
4. Chargeable income – Chargeable income is based on the operating profit stated in the company’s annual financial statements prepared in accordance with accounting standards, as adjusted by any differences between accounting requirements and the tax law. Such differences normally include disallowable expenses, exempt income and special reliefs allowed under the tax law. 5. Losses – Losses may be carried forward for five years following the year in which the losses were incurred. This applies to mining, farming, agro-processing, tourism, information communications technology (ICT) (that develop software locally) and manufacturing companies that manufacture mainly for export. All others are not allowed to carry forward losses. 6. Dividends paid to resident and non-resident shareholders are taxed at a rate of 8% on the gross dividend paid. 7. Foreign tax credit – Companies can claim a foreign tax credit for taxes imposed on their income in countries that have concluded a tax treaty with Ghana.
Employment Income Taxable employment income includes: salaries and wages, bonuses, overtime, and all kinds of benefits and allowances. Remuneration earned by resident individuals for work performed abroad is normally taxable when brought into Ghana. Similarly, income attributable to employment in Ghana is taxable in Ghana, wherever and however paid. Pay-As-You-Earn (PAYE): The PAYE contributions are withholdings from salaries of employees in order to satisfy their income tax responsibilities. The PAYE is computed with the PIT rates. Companies Income Tax Rates for Companies Rate of Tax All companies*
25%
Mining companies
35%
* Except companies engaged in mining activities.
Notes: 1. Residence – A company is resident in Ghana if it is incorporated under the laws of Ghana or its management and control are exercised in Ghana at any time during a year of assessment. 2. Basis – Resident companies are taxed on their worldwide income, however, income sourced outside Ghana is taxed in Ghana only if it is brought into or received in Ghana. 3. Non-resident companies are taxed only on Ghana-source income.
Withholding Taxes (WHTs) WHT of Payments to Resident Persons WHT at the appropriate rate must be deducted from payments made to resident persons in respect of the following: • Dividends. • Interest. • Rental payments. WHT on Payments to Non-Resident Persons WHT must be deducted from payments made to non-resident persons in respect of the following: • Management or professional fees. • Royalties. • Rental payments. • Dividends. • Interest, including deemed interest. • Business/trade.
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Guide to Fiscal Information
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