INDIVIDUAL TAXATION

Residents are taxed on worldwide income. Individuals are considered residents of Ghana if they reside in the country for an aggregate of 183 days within a year of assessment. Married couples are assessed separately.

INCOME TAX

Income of residents is taxed at progressive rates.

The following personal reliefs are granted to residents. The maximum deduction for each taxpayer is 10% of his assessable income.

• GHC350,000 (US$239,950) for an individual with a dependent spouse or an unmarried person with at least two dependent children          
• 25% of assessable income from business or employment for a disabled taxpayer
• Lesser of GHC350,000 (US$239,950) or total income is exempt for taxpayers aged 60 or older
• Child education allowance of GHC300,000 (US$205,671) per child; up to three dependant children
• Aged relative relief of GHC250,000 (US$171,393) for aged dependents; up to two aged dependents (over 60 years)      
• Training relief for costs of updating professional, technical or vocational skills or knowledge up to GHC1,000,000 (US$685,570)
• Life insurance contributions subject to certain limits

RENTAL INCOME

Rental income earned by residents is subject to 10% withholding tax. This is also a final tax.

CAPITAL GAINS TAX

Capital gains are taxed at 10% of the net gains realized from selling real properties. Acquisition cost, improvement costs, and legal fees and other expenses necessarily incurred in the process of selling the property, are deductible.

Net gains not exceeding GHC500,000 (US$342,785) are exempt. Gains are also exempt if the entire amount is reinvested in another property within a year, and if the transfer of ownership was to the taxpayer’s spouse, child, parent, brother, sister, aunt, uncle, nephew or niece.

PROPERTY TAX

Property Tax

Property tax is annually by local authorities on the estimated value of the property, depending on the classification of the area where it is located. The rates range from 0.5% to 3%.