GRA Personal Income Tax Return (Ghana)

A GRA Personal Income Tax Return in Ghana sets out the financial particulars the authority requires to assess the tax owed.

The Income Tax Act 2015 (Act 896) replaced the Internal Revenue Act 2000 (Act 592) and provides the primary legal framework for personal income taxation in Ghana. Under Section 1 of Act 896, income tax is charged on the chargeable income of every person for each year of assessment. Section 2 of Act 896 defines the year of assessment as the calendar year running from 1 January to 31 December. Section 5 of Act 896 establishes that a resident individual is subject to income tax on income derived from sources both within Ghana and outside Ghana, whereas a non-resident individual is taxed only on income sourced in Ghana.

Chargeable income for the purposes of the GRA Personal Income Tax Return in Ghana comprises employment income under Section 13 of Act 896, business income under Section 25 of Act 896, investment income under Section 34 of Act 896, rental income under Section 21 of Act 896, and gains from the realisation of assets under Section 46 of Act 896. Employment income includes basic salary, allowances, bonuses, directors' fees, and any benefits in kind provided by an employer. The employer withholds tax at source through the Pay As You Earn (PAYE) system administered by the GRA under Section 116 of Act 896, but the employee must still file an annual return if they have additional sources of income or if total income exceeds prescribed thresholds.

The Personal Income Tax rates in Ghana are graduated under the Fifth Schedule to the Income Tax Act 2015 (Act 896). The Commissioner-General of the GRA publishes revised tax tables annually by statutory instrument. For the 2024 year of assessment, the Ghana Revenue Authority applied the following graduated bands: the first GHS 4,380 per annum is exempt; the next GHS 1,320 attracts a rate of 5%; the next GHS 1,560 attracts 10%; the next GHS 38,000 attracts 17.5%; the next GHS 192,000 attracts 25%; and income above GHS 237,260 per annum attracts 35%.

The Social Security and National Insurance Trust (SSNIT) contribution under the National Pensions Act 2008 (Act 766) is deductible from employment income before calculating income tax. An employee contributes 5.5% and an employer contributes 13% of the worker's basic salary to the SSNIT Fund, with 2.5% of the employer contribution directed to the Health Insurance Fund under the National Health Insurance Act 2012 (Act 852). The SSNIT deduction reduces the taxable employment income of the individual.

A resident individual with a Ghana Revenue Authority Tax Identification Number (GRA TIN) must file the GRA Personal Income Tax Return electronically through the GRA Integrated Tax Administration System (ITAS) portal or in paper form at any GRA Domestic Tax Revenue Division (DTRD) office. The Ghana Card National Identification Number (NIN) issued by the National Identification Authority (NIA) of Ghana serves as the primary identity document for GRA TIN registration and tax filing. Non-resident individuals must file through a GRA-accredited tax agent or legal practitioner enrolled with the Ghana Bar Association.

The GRA Personal Income Tax Return in Ghana must be filed by every resident individual whose total chargeable income for the year of assessment exceeds the tax-free threshold, regardless of whether the income has already been subject to withholding tax at source under the Pay As You Earn (PAYE) system.

A salaried employee whose only income is employment income fully taxed through PAYE under Section 116 of the Income Tax Act 2015 (Act 896) is generally not required to file a separate annual return, provided the employer has filed the correct PAYE returns with the Ghana Revenue Authority. The employer issues a P9 PAYE deduction certificate at the end of each year of assessment, which summarises the income earned and tax deducted.

A resident individual must file the GRA Personal Income Tax Return when they derive income from more than one employer during the year of assessment. The combined income from multiple employers may push the individual into a higher graduated tax band under the Fifth Schedule to Act 896, creating an additional tax liability that the individual must settle by filing an annual return.

An individual who earns rental income from residential or commercial property in Ghana must file the GRA Personal Income Tax Return and declare the rental income under Section 21 of Act 896. Rental income is subject to a flat rate of 8% or the graduated income tax scale, at the election of the individual landlord. The Lands Commission of Ghana may cross-reference property ownership records with GRA ITAS filings to identify non-compliant landlords.

A self-employed individual or sole trader carrying on business in Ghana is required to file the GRA Personal Income Tax Return annually and pay quarterly provisional tax instalments under Section 118 of Act 896. Provisional tax estimates must be submitted by the end of the first month of each quarter of the year of assessment.

An individual who realises a capital gain from the sale of land, a building, shares, or other chargeable assets in Ghana must include the gain in the GRA Personal Income Tax Return under Section 46 of Act 896, unless the gain is separately taxed as a capital gains tax under Section 47. Lawyers and estate agents enabling land transactions registered with the Lands Commission are required to withhold 3% of the consideration as advance income tax.

Dividends, interest, and royalties received by a resident individual from Ghanaian sources are subject to withholding tax at source under Sections 115 and 117 of Act 896. The individual must include these amounts in the annual Personal Income Tax Return if they wish to use the related expenditure deductions available under Act 896.

The deadline for filing the GRA Personal Income Tax Return is 30 April each year for the preceding year of assessment ending 31 December. Late filing attracts a penalty of GHS 500 plus 10% of the tax owed, with additional interest accruing at the statutory rate prescribed by the Ghana Revenue Authority Act 2009 (Act 791).

The GRA Personal Income Tax Return in Ghana under the Income Tax Act 2015 (Act 896) must contain the following information and declarations to be accepted by the Ghana Revenue Authority Domestic Tax Revenue Division.

Taxpayer Identification: The full legal name of the individual as it appears on the Ghana Card (National Identification Number issued by the National Identification Authority), the GRA Tax Identification Number (TIN), the residential address, and the SSNIT membership number issued by the Social Security and National Insurance Trust.

Year of Assessment: The specific calendar year of assessment in respect of which the return is filed, as defined under Section 2 of the Income Tax Act 2015 (Act 896). Ghana's year of assessment runs from 1 January to 31 December.

Employment Income Schedule: Full particulars of each employer during the year of assessment, including the employer's name, GRA TIN, total emoluments paid, PAYE tax deducted by each employer, SSNIT contributions, and any benefits in kind. The P9 certificate issued by the employer confirms these figures.

Business Income Schedule: For self-employed individuals and sole traders, a summary profit and loss account showing gross receipts, allowable deductions under Sections 25 to 33 of Act 896, and net chargeable business income. Capital allowances on business assets may be claimed under the Third Schedule to Act 896.

Rental Income Schedule: Gross rental receipts from residential and commercial property, deductible repair and maintenance expenses under Section 21(3) of Act 896, and the net rental income chargeable to tax. The Lands Commission property registration number and physical address of each rental property must be stated.

Investment Income: Dividends, interest, royalties, and annuities received during the year of assessment, together with withholding tax certificates from the paying entity. Withholding tax deducted at source is credited against the total income tax liability.

Capital Gains: Proceeds from the disposal of chargeable assets under Section 46 of Act 896, including land, buildings, shares in Ghanaian companies, and business goodwill, less the allowable cost base. Title deeds registered with the Lands Commission of Ghana and GRA transfer tax receipts support the declared figures.

Tax Computation: Application of the graduated tax rates in the Fifth Schedule to Act 896 to total chargeable income, subtraction of personal tax credits, SSNIT deductions, and withholding tax credits to arrive at the balance of tax payable or refundable.

Provisional Tax Paid: Quarterly provisional tax payments under Section 118 of Act 896, supported by GRA payment receipts, are credited against the final tax liability computed in the return.

Declaration and Signature: A signed declaration by the individual taxpayer confirming that the information in the return is true and complete, or by a GRA-accredited tax practitioner signing on behalf of the taxpayer with the practitioner's authorisation reference number.

Payment of Balance: Any balance of tax due after crediting PAYE deductions, withholding tax, and provisional tax payments must be remitted to the Ghana Revenue Authority by 30 April of the filing year. Payment may be made at any GRA office, through approved banks, or via the GRA mobile money payment platform.

Forms-legal.com provides this GRA Personal Income Tax Return template to assist resident individuals in Ghana in understanding and preparing their annual income tax filing obligations under the Income Tax Act 2015 (Act 896). Individuals with complex income arrangements, multiple business interests, or significant capital gains should engage a chartered accountant or tax practitioner registered with the Institute of Chartered Accountants Ghana (ICAG) for professional assistance. The Ghana Revenue Authority Domestic Tax Revenue Division offices are located in Accra, Kumasi, Tamale, Takoradi, and other regional capitals.