Employees earning GH365 or less per month or GH4,380 per year will not be taxed, according to the Ghana Revenue Authority (GRA).
In a tweet, the Authority explained that the decision was made in accordance with the Income Tax (Amendment) (No. 2) Act 2021. (Act 1071).
According to the GRA, the purpose of 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 the 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 an additional six months in 2022, and to provide for related matters.”
After being passed by Parliament, the Act was assented to by the President on December 30, 2021.
The National Tripartite Committee announced in June last year that the National Minimum Daily Wage would be increased to GH13.53 effective January 1, 2022.
The Income Tax (Amendment) (No. 2) Act 2021 is available below (Act 1071).
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