Tax Reliefs Available to Individuals Businesses in Ghana
Understanding and complying with Ghana’s tax laws not only ensures legal and financial security but also provides businesses and individuals with various tax reliefs designed to reduce their tax burden. What Are Tax Reliefs? Tax reliefs are allowances granted to resident individuals and corporate entities to lower their taxable income, ultimately reducing the amount of tax payable. In Ghana, the tax system applies graduated tax rates to the chargeable income of resident individuals (such as sole proprietors, employees, and partners in a partnership), while corporate entities are taxed at a standard corporate tax rate. These reliefs are deducted when calculating chargeable income from business, employment, or investment sources. Types of Tax Reliefs 1. Personal Reliefs According to Section 51 of the Income Tax Act, 2015 (Act 896), personal reliefs are available to resident individuals and are deducted when determining chargeable income. These reliefs, outlined in the Fifth Sch...