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Ghana has five tax levels, based on your monthly salary or annual income.

• 0% for GHS 120/GHS 1,440 (monthly/yearly)
• 5% for the next GHS 60/720
• 10% for the next GHS 84/GHS1 008
• 17.5% for the next GHS 2 136/GHS 25 632
• 25% for everything exceeding GHS 2 400/GHS 28 800

These taxes are paid incrementally, meaning that if you earn GHS 2,500/month you will not pay 25% on your entire income. Rather, you will pay 0% on the first GHS 120, 5% on the next GHS 60 etc. You would only pay 25% on the final GHS 100.

There are tax breaks for those with dependents, those who are disabled and the elderly.

Additional information can be found on the Ghana Revenue Agency website.

Reporting

Self-employed individuals pay taxes in 4 instalments at graduated rates. Employees of a company will have taxies withheld from their salaries.

VAT & NHIL

Ghana applies a value added tax (VAT) and a national health insurance levy (NHIL) onto goods and services.

The VAT is imposed on the expenditure of consumers when they purchase goods and services. It is collected by businesses that then account for the tax collected at the end of each month. The current standard rate of the tax is 12.5%. A 0% rate is applied to all exports.

The NHIL is imposed on all goods and services supplied in or imported into Ghana. The levy is charged at a rate of 2.5% on the VAT exclusive selling price. It is collected by registered businesses in the same way as the VAT.

Further details can be found on the Ghana Revenue Agency website.