We have the expertise to handle all your statutory returns which can be cumbersome. We handle PAYE, VAT, WHT, SSF, Income tax and other returns unique to your business.
Pay As You Earn (PAYE)
PAYE is a tax deducted at source from the income of an employee and is paid by an employer to Ghana Revenue Authority (GRA) on behalf of the employee. The tax is charged on all of the income of an employee whether it is received in cash or kind.
The employer is required by the law to deduct the monthly PAYE from the employee’s income using the monthly graduated individual tax rate.
According to the law, these items should be deducted from the employees’ income before calculating the monthly PAYE:
- Social Security and National Insurance Trust (SSNIT) – 5.5% of basic salary
- Mortgage Interest paid on only one residential premises of the employee’ lifetime
- Provident Fund up to 16.5% of the employee’s basic salary either paid by the employer or employee or both
- Contributions and donation to a worthwhile cause
Value Added Tax (VAT), NHIL & GetFund
A VAT is a tax applied on the value added to goods and services at each stage in the production and distribution chain. It forms part of the final price the consumer pays for goods or services.
The below items and rates are applicable in Ghana:
Manufacturers and service providers
- National Health and Insurance Levy (NHIL) – 2.5%
- Ghana Education Trust Fund (GetFund) – 2.5%
- Value Added Tax (VAT) – 12.5%
Wholesalers and retailers
- Value Added Tax (VAT) – 3%
Monthly Returns
Registered businesses are required to submit monthly returns showing:
- VAT, NHIL and GetFund charged on supplies;
- The VAT incurred on the purchase of goods and services; and
- Net VAT, NHIL and GetFund payable or credited.
VAT, NHIL and GetFund returns and payment (if any) are ordinarily due by the last working day of the month after the month to which the return relates.
Withholding Tax (WHT)
The amount deducted (withheld) is ordinarily due for payment to the Ghana Revenue Authority by the 15th day of the month after the month to which the deduction was made. The company is required by law to deduct from the amount to be paid to the service provider or beneficiary as indicated below:
| Income | Rate |
| Resident persons | |
| Interest (excluding individuals and resident financial institutions) |
8% |
| Dividends |
8% |
| Rent on residential properties to individuals and legal persons |
8% |
| Rent on non-residential properties to individuals and legal persons |
15% |
| Fees to resident individuals as invigilators, examiners and part-time teachers or lecturers, and endorsement fees to individuals |
10% |
| Fees or allowances to directors, managers, board members and trustees who are resident individuals |
20% |
| Commission to insurance, sales, canvassing and lotto agents who are individuals |
10% |
| Supplies of goods exceeding GH¢2,000 per annum |
3% |
| Supplies of works exceeding GH¢2,000 per annum |
5% |
| Supplies of services by an entity exceeding GH¢2,000 per annum |
7.5% |
| Supplies of general services by an individual |
7.5% |
| Payments to petroleum subcontractors |
7.5% |
| Payments for unprocessed precious minerals |
3% |
| Royalty, natural resource payments |
15% |
| Non-resident persons | |
| Dividends |
8% |
| Royalties, natural resources payments and rents |
15% |
| Management and technical service fees |
20% |
| Goods, works or any services |
20% |
| Repatriated branch after-tax profits |
8% |
| Interest income (excluding individuals) |
8% |
| General insurance premiums |
5% |
| Income from telecommunication and transportation business |
15% |
| Payments to petroleum subcontractors |
15% |
Social Security Fund
The law categorizes social security fund/contribution under a three-tiered scheme, as follows:
- 1st Tier – A mandatory scheme, whereby the employer pays 13.5% of the employee’s basic salary to Social Security and National Insurance Trust (SSNIT)
- 2nd Tier – A mandatory scheme, whereby the employer pays 5% of the employee’s basic salary to privately managed occupational scheme (Trustee)
- 3rd Tier – This is a voluntary provident fund and personal pension scheme managed by a Trustee
The employer is required to remit the First and Second Tiers contributions for the month within 14 days from the end of the month in which the deduction is expected to have been made.
Company Income Tax
- Income tax rates applicable to companies differ according to industry, location and type of business. The general rate applicable to entities is 25%