Income Taxes
The top personal income-tax rate is only 30 percent, but that rate is encountered at an income
threshold of $5,400 per year. The 20 percent rate hits at $2,700 and the 15 percent rate hits
at $270 per year.
In addition, Ghanians pay a 12.5 percent Value Added Tax VAT. There is also
a "wealth tax," currently suspended, but which could come back at any moment. Even the cloud of
a wealth tax discourages the accumulation of wealth.
2005 Budget
Corporate tax reduces from 32.5 per cent to 28 per cent.
2004 Budget
Increase in the minimum tax free threshold from 1.2 million to 1.5 million
Reduction in corporate income tax rate from 32.5 percent to 30 percent effective next financial year.
Special tax rate of 25 percent for companies listing on Stock Exchange for the first time
5-year tax holiday for new agro-processing firms
Revised taxes for agro-processing as follows:
- Accra and Tema - 20 percent
- Other Regional Capitals - 10 percent
- Outside Regional Capitals - zero
For 3 Northern Regions zero tax rates for Agro-processing firms irrespective of location
7-year tax holiday for waste processing enterprises
5-year tax holiday for companies investing in production of cocoa industrial by-products
