Pay As You Earn (PAYE) – Ghana Revenue Authority (GRA)

The monthly PAYE is deducted at source by your employer using the monthly graduated individual tax rate. These items are deducted from employees’ income before calculating PAYE.

• Social Security and National Insurance Trust-5.5% of basic salary.
• Mortgage Interest paid on only one residential premises of the employee’ lifetime.
• Provident fund up to 16.5% of your basic salary either paid by the employer or employee or both.
• Contributions and donation to a worthwhile cause

These are some of the allowances that will be added to salary for PAYE purposes such as; Transport allowance, Rent (Accommodation) allowance.

• Risk allowance, Night duty allowance, Responsibility allowance, Child Education allowance, House help allowance, Cook allowance, Garden boy allowance, etc.
• Allowances paid in cash are added to the salary. Benefits to the employees in kind are added for tax purposes, but when the benefit is paid in kind, it is quantified in monetary value before it is added to salary such as electricity, water, vehicle with driver and fuel, vehicle and fuel, vehicle only, fuel only, accommodation and loan benefit are also benefit in kind which are quantified in the law. (The Fourth Schedule of Act 896,2015 for the tax rates applicable)

Lenvica HRMS software calculates monthly the PAYE of each employee along with the salary processing. User can specify the deductions and allowances that must be considered for the PAYE calculation. The software applies the cumulative figure in the PAYE slab advised by GRA and returns the PAYE amount due for each employee.

Tax clearance certificate (TCC) is a document given to a person from the GRA as evidence that the person has fulfilled all his tax obligations or has made adequate arrangements to fulfil that obligation.

Requirement

• The applicant shall state the purpose for which the TCC is required.
• The Commissioner-General will issue the TCC to the applicant to cover a specified period if you are in good standing if you have satisfied your tax obligations.
• You need TIN to apply for TCC
• For a new company, you need to be registered with GRA, then apply for TCC and attach bank statement(s). Business registration certificates should be provided and part payment of your Provisional or Self-Assessment should be made in order to be given a Tax Clearance Certificate

How to apply

• A person may apply to the Commissioner-General who is represented by the head of the office in writing.
• The application would have to be delivered in person at your Domestic Tax Revenue Division office

Uses

• Clear goods at the port
• Register land title
• Tender for supply of goods, works and services with government ministries, government agencies, local government authorities and other bodies in which public funds are vested.
• Renew practising certificate
• Renew residential and work permit by expatriates

Expiration

• TCC can only be used for the specified period
• The Commissioner-General will issue the TCC to the applicant to cover a specified period if you are in good standing

New Tax Rates effective 1st January, 2020

Annual Income Tax Rates Applicable to Resident Individuals

Monthly Income Tax Rates Applicable to Resident Individuals