Corporate Tax: This is the tax paid by companies on their profits in the year. The tax rate is 25%.
Personal Income Tax: Self-employed persons are required to pay Income tax at graduated rates in four equal instalments. The current Personal Income Tax rates took effect from November 2011.
Pay As You Earn (PAYE): The PAYE contributions are withholdings from salaries of employees in order to satisfy their income tax responsibilities. The PAYE is computed with the Personal Income Tax rates. (See box below)
ANNUAL TAX RATES – EFFECTIVE 23 MAY 2013
|Chargeable Income (GH¢)||Rate (%)||Tax (GH¢)||Cumulative Chargeable Income (GH¢)||Cumulative Tax (GH¢)|
Exceeding 31,680 ($9,068) – 25%