The Ghana Revenue Authority (GRA) has announced a tax-free system for workers who earn Ghc365 and below as monthly salary or Ghc 4,380.00 as annual salary.
This development follows the amendment of (no. 2) of the Income Tax Act, 2021 (Act 1071).
In a tweet, GRA said the Act is to amend the Income Tax Act, 2015 (Act 896) to review the rates of income tax for individuals as well as to reduce the withholding tax rate for the sale of unprocessed gold by small scale miners.
The act is to also increase the threshold for an individual to whom the presumptive tax under the Modified Taxation Scheme applies to extend the Covid-19 concessions granted in 2021 for a further six months in 2022 and to provide for related matters.
“We are happy to inform you that, with the amendment (no. 2) of the Income Tax Act, 2021 (Act 1071), any employee (worker) who receives Ghc365 and below as monthly salary or Ghc 4,380.00 as annual salary is taxed at 0%!!!.”
“The act is to amend the Income Tax Act, 2015 (Act 896) to review the rates of income tax for individuals; to reduce the withholding tax rate for sale of unprocessed gold by small scale miners; to increase the threshold for an individual to whom the presumptive tax under the Modified Taxation Scheme applies; to extend the Covid-19 concessions granted in 2021 for further six months in 2022 and to provide for related matters,” the GRA tweeted.
