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Taxes and Rates and Taxation i

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:
  • 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