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Taxes And Benefits

Taxes And Benefits, What Taxes do you Pay, What Tax relief can you Get, Tax relief for Disabled, for Aged Relatives, for Children's Education and more on Mywage Ghana.

What is tax relief?

Tax relief is an approved deductible allowance intended to reduce the employee’s taxable income and thereby lesson his/her tax burden. The tax relief is granted against the employee’s assessable income for a particular year of assessment. A relief is granted on an annual bases.

For a relief to be granted, the employee’s personal circumstances are always taken into consideration. For instance, it is considered that a married person with children attending school will normally be more hard pressed than a person who is single and has no familial responsibilities. Other reliefs are linked to the making of some kind of payment or disbursement (e.g. the payment of a child’s school fees or payment to a charitable organisation).

To claim a relief one has to apply personally to the Commissioner of Tax.

What does the tax law say if one has a partner?

The tax law says that if there is an individual with a dependent spouse or at least two dependent children he or she is entitled to tax relief. The amount of relief is GHc35.00 per annum.

Do tax reliefs cover children’s education?

Yes. Taxpayers who are sponsoring the education of their children or wards in any recognised registered educational institution in Ghana qualify for tax relief. This relief is granted up to a maximum of three children and only one parent is permitted to claim the relief in respect of the same child.

Do disabled persons qualify for tax relief?

Yes. Persons who prove to the satisfaction of the Commissioner of Tax that they are disabled and are certified by the Social Welfare Department are entitled to tax relief. The relief for the disabled is 25% of the person’s total annual income from employment and business.

What about old age and tax relief?

Taxpayers above the age of 60 years who derive income from business or employment qualify for this relief. To qualify for the relief, the taxpayer must show proof of their date of birth (e.g. birth certificate, baptismal certificate an/or any other document).

I have an age dependent relative. Do I qualify for tax relief?

A person who proves to the satisfaction of the Commissioner of Tax that he/she has an aged relative (other than their child or spouse) who is dependent on them is qualified for tax relief. It is granted up to a maximum of two dependents and only one person can claim in respect of the same relative. The age limit of the dependent is 60 years and above. For a taxpayer to be granted this relief, he or she must support this document, by submitting an affidavit testifying that they are truly responsible for the upkeep of the dependent relative.

What about pay if my partner has an accident?

Depending on the relevant collective bargaining agreement, the employer shall continue to pay the worker during this period, as has been stipulated in the collective bargaining agreement.

What about pay if my partner is sick?

Depending on the relevant collective bargaining agreement, the employer shall continue to pay the worker during a period when he or she is sick, as has been stipulated in the collective bargaining agreement.

What about social security schemes and contributions?

Where a worker of belonging to a social security scheme has made less than fifteen years contribution to the fund before the worker retires either compulsorily or voluntarily, the member is entitled to:

  • A lump sum of money equal to the member’s contribution as benefit; and
  • An interest of seventy-five per cent at the prevailing government treasury bill rate on the lump sum.

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Tax relief is an approved deductible allowance intended to reduce the employee’s taxable income and thereby lesson his/her tax burden. The tax relief is granted against the employee’s assessable income for a particular year of assessment. A relief is granted on an annual bases.

To claim a relief one has to apply personally to the Commissioner of Tax.

What does the tax law say if one has a partner?

The tax law says that if there is an individual with a dependent spouse or at least two dependent children he or she is entitled to tax relief. The amount of relief is GHc35.00 per annum.

Do tax reliefs cover children’s education?

Yes. Taxpayers who are sponsoring the education of their children or wards in any recognised registered educational institution in Ghana qualify for tax relief. This relief is granted up to a maximum of three children and only one parent is permitted to claim the relief in respect of the same child.

Do disabled persons qualify for tax relief?

Yes. Persons who prove to the satisfaction of the Commissioner of Tax that they are disabled and are certified by the Social Welfare Department are entitled to tax relief. The relief for the disabled is 25% of the person’s total annual income from employment and business.

What about old age and tax relief?

Taxpayers above the age of 60 years who derive income from business or employment qualify for this relief. To qualify for the relief, the taxpayer must show proof of their date of birth (e.g. birth certificate, baptismal certificate an/or any other document).

I have an age dependent relative. Do I qualify for tax relief?

A person who proves to the satisfaction of the Commissioner of Tax that he/she has an aged relative (other than their child or spouse) who is dependent on them is qualified for tax relief. It is granted up to a maximum of two dependents and only one person can claim in respect of the same relative. The age limit of the dependent is 60 years and above. For a taxpayer to be granted this relief, he or she must support this document, by submitting an affidavit testifying that they are truly responsible for the upkeep of the dependent relative.

What about pay if my partner has an accident?

Depending on the relevant collective bargaining agreement, the employer shall continue to pay the worker during this period, as has been stipulated in the collective bargaining agreement.

What about pay if my partner is sick?

Depending on the relevant collective bargaining agreement, the employer shall continue to pay the worker during a period when he or she is sick, as has been stipulated in the collective bargaining agreement.

What about social security schemes and contributions?

Where a worker of belonging to a social security scheme has made less than fifteen years contribution to the fund before the worker retires either compulsorily or voluntarily, the member is entitled to:

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