The Ghana Revenue Authority (GRA) has said it will stop taxing workers who receive not more than GH¢365 as monthly salary or ¢4,380.00 as annual salary.
It follows the amendment (no. 2) of the Income Tax Act, 2021 (Act 1071).
“We are happy to inform you that, with the amendment (no. 2) of the Income Tax Act, 2021 (Act 1071), any employee (worker) who receives GH¢365 and below as monthly salary or GH¢4,380.00 as annual salary is taxed at 0%!!!,” the GRA posted on social media platform Twitter.
The GRA said the Act is “to amend the Income Tax Act, 2015 (Act 896) to review the rates of income tax for individuals; to reduce the withholding tax rate for sale of unprocessed gold by small scale miners; to increase the threshold for an individual to whom the presumptive tax under the Modified Taxation Scheme applies; to extend the COVID-19 concessions granted in 2021 for further six months in 2022 and to provide for related matters.”
The Act was assented to by the President on December 30, 2021, after it was passed by Parliament.
In June last year, the National Tripartite Committee announced that the National Minimum Daily Wage will be revised to GH¢13.53 effective January 1, 2022.