There are several types of taxes in Ghana. Different categories of tax include:
- Corporate Tax
- Withholding Tax
- Capital Gains Tax
- Value Added Tax/NHIL
- Employment Tax
- Dividend Tax
- Communications and Service Tax.
Most sectors fall under the 25 per cent bracket, but some industries have specific corporate tax rates:
- Mining – 35 per cent
- Hotels – 22 per cent
- Companies listed on stock exchange – 22 per cent
- Financial institutions that provide agricultural loans – 20 per cent
- Financial institutions – 20 per cent with income from leasing companies
Domestic and Individual Tax
- Resident individuals pay tax on their income at graduated rates with 25 per cent being the highest rate.
- Sole proprietorships and partners of partnerships also pay tax at the graduated rates.
- Individuals enjoy tax reliefs such as child education relief, old age relief, aged dependant relief, marriage or responsibility relief and disabled relief.
- Individuals who have a life insurance policy get relief for the premium paid and those who pay social security and national insurance trust get relief for the amount contributed.
- Employers also get relief for the additional contribution they make on behalf of their employees.
Further details can be obtained from the Ghana Revenue Authority.
Double Taxation Agreements
Ghana has signed Double Taxation Agreements with some countries to facilitate cross border trade and investment and create enabling environment for foreign direct investment in Ghana and the respective countries. Currently, it has agreements with France, UK, Belgium, Italy, Germany, South Africa, Switzerland and the Netherlands. Australia does not have a Double Taxation Agreement in place with Ghana.