GRA PAYE Monthly Return

A GRA PAYE Monthly Return in Ghana records the income, deductions and tax due for the period it covers.

Section 114 of the Income Tax Act 2015 (Act 896) imposes a legal obligation on every employer in Ghana — whether a company incorporated under the Companies Act 2019 (Act 992), a sole trader, a partnership, a government institution, or a non-governmental organisation — to operate PAYE, deduct income tax from each employee's emoluments at the applicable rate under Act 896, and remit the deductions to GRA by the 15th day of the month following the month of payment. The employer is personally liable for failure to deduct and remit PAYE under the Revenue Administration Act 2016 (Act 915), regardless of whether the employee has separately paid or settled any personal income tax.

The GRA PAYE Monthly Return Ghana covers all employees of the employer — full-time, part-time, casual, and contract employees — resident and non-resident — whose emoluments are subject to Ghanaian income tax under Act 896. The term 'emoluments' under Act 896 is broadly defined to include salary, wages, overtime pay, bonus, commission, allowances (housing, transport, medical), director's fees, and the monetary value of non-cash benefits above the exempt threshold. Certain allowances are exempt from PAYE under the Third Schedule to Act 896, including reimbursements of actual expenses and certain prescribed allowances.

The income tax rates applicable to employment income in Ghana under Act 896 and as amended by subsequent Finance Acts follow a progressive scale. For the 2025 income year: income up to GHS 4,380 per annum is taxed at 0%; GHS 4,381 to GHS 5,580 at 5%; GHS 5,581 to GHS 6,780 at 10%; GHS 6,781 to GHS 10,980 at 17.5%; GHS 10,981 to GHS 240,000 at 25%; and income above GHS 240,000 at 35%. Rates are typically revised annually in the Annual Budget and Financial Statement presented to Parliament by the Minister of Finance. Forms-legal.com provides this template as a starting point for PAYE compliance in Ghana.

Employers must also submit an annual employer's statement (Form 17) to GRA by 31 March of the following year, reconciling the total PAYE deducted and remitted for each employee during the year with the individual tax credits issued to employees. The annual employer's statement is the basis for GRA issuing individual employees with their annual tax credit certificate (P60 equivalent) which employees use in their personal income tax returns under Act 896.

The legal framework governing the GRA PAYE Monthly Return in Ghana draws on several key statutes and regulatory bodies. Under Ghanaian law, the Constitution of the Republic of Ghana 1992 is the supreme law. The Courts Act 1993 (Act 459) governs court procedures. The Ghana Revenue Authority (GRA) administers tax under the Income Tax Act 2015 (Act 896). The High Court of Ghana has unlimited original jurisdiction under Article 140 of the Constitution. The Data Protection Act 2012 (Act 843) and the Data Protection Commission govern personal data processing. Parties executing a GRA PAYE Monthly Return in Ghana should confirm the document reflects current law, including any amendments enacted since the original drafting date. The Income Tax Act 2015 (Act 896) sets the foundational requirements.

A GRA PAYE Monthly Return is needed in Ghana in the following circumstances.

The GRA PAYE Monthly Return is mandatory under Section 114 of the Income Tax Act 2015 (Act 896) for every employer in Ghana that pays emoluments to one or more employees during any month of the year. The return must be filed and PAYE remitted to GRA by the 15th day of the month following the month in which the emoluments were paid, regardless of whether the employer has deducted any PAYE in that month (a nil return must be filed where no PAYE was deducted).

The return is needed when a company incorporated under the Companies Act 2019 (Act 992) hires its first employee and begins paying salary — the employer must register with GRA as a PAYE employer, obtain a GRA employer registration number, and thereafter file PAYE returns monthly.

The GRA PAYE Monthly Return is required when an employer pays a bonus, commission, or special payment in addition to regular monthly salary — all such payments must be included in the month's PAYE return at the applicable marginal rate under Act 896.

The return is needed when a GIPC-registered enterprise employs non-citizen employees under the GIPC foreign employee quota approved under Section 28 of the Ghana Investment Promotion Centre Act 2013 (Act 865) — non-citizen employees' emoluments are subject to PAYE under Act 896 at the same progressive rates as Ghanaian citizens.

The GRA PAYE Monthly Return is required when an employer pays directors' fees to directors of the company — directors' fees are subject to PAYE withholding at 20% under Act 896 for resident directors, and at the non-resident rate for non-resident directors. The monthly PAYE return must include directors' fees paid in the relevant month.

Employers must also file a nil PAYE return for months in which no emoluments were paid, to confirm to GRA that the employer is still operational. Failure to file a nil return can result in GRA issuing a best-of-judgement assessment under the Revenue Administration Act 2016 (Act 915). Forms-legal.com provides this PAYE Monthly Return template as a starting point for employer tax compliance in Ghana.

A valid GRA PAYE Monthly Return under Section 114 of the Income Tax Act 2015 (Act 896) must contain the following essential elements.

Employer Identity: Full legal name of the employer; Ghana Revenue Authority (GRA) employer registration number and TIN; Office of the Registrar of Companies (ORC) registration number (where applicable); registered business address; and the name and designation of the authorised officer signing the return.

Return Period: The month and year to which the return relates (e.g. January 2025). PAYE returns are monthly and the return period must be clearly stated.

Employee Schedule: A schedule of all employees paid during the month, listing for each employee: full name; Ghana Card number or TIN; employment income for the month (basic salary, allowances, bonuses, and value of non-cash benefits above the exempt threshold); exempt allowances deducted; chargeable emoluments; income tax deducted under the progressive rate scale in Act 896; and cumulative year-to-date figures.

Social Security Contributions: Confirmation that SSNIT Tier 1 contributions (employee: 5.5%, employer: 13% of basic salary) and Tier 2 contributions (employer: 5% to NPRA-regulated fund manager) have been deducted and remitted under the National Pensions Act 2008 (Act 766). SSNIT contributions are not included in the PAYE return but must be reported separately to SSNIT.

Total PAYE Summary: Total gross emoluments paid during the month; total chargeable emoluments; total income tax deducted; total income tax remitted to GRA (confirming payment details, GRA payment receipt number, and bank through which payment was made — a Bank of Ghana-licensed commercial bank).

Declaration: Declaration by the authorised officer that the return is true and complete. Employers who fail to deduct and remit PAYE are personally liable for the tax plus interest and penalties under the Revenue Administration Act 2016 (Act 915). Forms-legal.com provides this GRA PAYE Monthly Return template as a starting point for employer tax compliance in Ghana.

Additional compliance elements for a GRA PAYE Monthly Return used in Ghana include: Under Ghanaian law, the Constitution of the Republic of Ghana 1992 is the supreme law. The Courts Act 1993 (Act 459) governs court procedures. The Ghana Revenue Authority (GRA) administers tax under the Income Tax Act 2015 (Act 896). The High Court of Ghana has unlimited original jurisdiction under Article 140 of the Constitution. The Data Protection Act 2012 (Act 843) and the Data Protection Commission govern personal data processing. Forms-legal.com provides this template as a starting point for Ghana-compliant documentation.