The Ghana Revenue Authority (GRA) has announced that employees who earn Ghc365 and below as monthly salary will not be taxed.
The Authority explained in a communique on Monday, January 10, 2022, that chargeable income is made up of income from employment, business or investment less any allowable deduction, adding that “chargeable income from each source of income is determined separately.”
“We are happy to inform you that, with the amendment (no. 2) of the Income Tax Act, 2021 (Act 1071), any employee (worker) who receives Ghc365 and below as monthly salary or Ghc 4,380.00 as annual salary is taxed at 0%.”
According to the GRA, the Act is “to amend the Income Tax Act, 2015 (Act 896) to review the rates of income tax for individuals; to reduce the withholding tax rate for sale of unprocessed gold by small scale miners; to increase the threshold for an individual to whom the presumptive tax under the Modified Taxation Scheme applies; to extend the Covid-19 concessions granted in 2021 for further six months in 2022 and to provide for related matters.”