GRA made the announcement on the microblogging website, Twitter, on Tuesday, January 11, 2021.
The Authority stated that workers who earn below GH¢365 monthly will not be taxed.
According to the GRA, these are the new chargeable income and the rates applicable to each:
For income below GH¢365 the worker pays zero tax (0%)
Next GH¢110 has a five percent (5%) tax applicable to it
Next GH¢130 attracts a ten percent rate (10%)
Next GH¢3000 will attract a 17.5percent
Whiles the next GH¢16,395 attracts a 25%, income exceeding GH¢ 20,000 attracts a 30% tax.
A tax expert, Francis Tilmore Boi, explained that, tax is calculated gradually on the bands listed above.
Note that the first GH¢365 on every worker’s income is non-taxable, after which tax rates are applied on the bands.
Thus if your income is, for example, GH¢1000, the first GH¢365 will be deducted and zero tax will be applied.
Tax will now be applied on the remaining GH¢635, beginning from the next GH¢110 at a 5% tax rate. The remainder of your income GH¢525 will be subjected to the next 130 at a tax rate of 10%.
Therefore, because the next 525 is not up to GH¢3000 the tax is left at the last 130 therefore tax payable on GH¢1000 is GH¢18.50p. Read Full Story
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