Here is how much tax you will pay based on your income.
The Ghana Revenue Authority (GRA) has proposed new income tax rates that will decide how much tax workers would pay out of their paychecks.
On Tuesday, January 11, 2021, GRA made the news on the microblogging website Twitter.
Workers earning less than GH¢365 per month would not be taxed, according to the Authority.
According to the GRA, the following are the new chargeable income amounts and rates:
The worker pays no tax if his or her salary is less than GH¢365 (0 percent )
Here is how much tax you will pay
Following that, GH¢110 is subject to a five percent (5%) tax.
Following that, GH¢130 has a ten percent rate (10 percent )
Next, GH¢3000 will be eligible for a 17.5 percent discount.
While income between GH¢16,395 and GH¢20,000 is taxed at a rate of 25%, income beyond GH¢20,000 is taxed at a rate of 30%.
According to Francis Tilmore Boi, a tax expert, tax is computed progressively on the above-mentioned ranges.
It is important to note that the first GH¢365 of a worker’s salary is tax-free, after which the tax rates are applied to the bands.
If your income is GH¢1000, for example, the first GH¢365 will be deducted and you will pay no tax.
The remaining GH¢635, which will be taxed at a rate of 5%, will be taxed beginning with the following GH¢110. The remaining of your GH¢525 income will be taxed at a rate of 10% over the next 130 days.
Because the following 525 is not equal to GH¢3000, the tax is applied on the last 130, making the tax due on GH¢1000 is GH¢18.50p.
source: ghanaweb
