Apart from social security contributions, qualifying insurance premiums, and donations, no non-business expenses are deductible, and no standard deductions are allowed.
The tax-free annual threshold is GHS 3,456. In addition, annual reliefs for individuals are provided as follows:
||Annual reliefs (GHS)
|An individual with a dependent spouse or at least two dependent children
||25% of Y*
|Aged 60 or more
|Dependent child or ward education
||200 per dependant** (limited to 3 dependants)
|Aged dependants (over 60 years)
||100 per dependant** (up to 2 dependants)
|Professional, technical, or vocational training cost
||up to 400
* Y is assessable income from any business or employment.
** Where more than one person qualifies in respect of the same dependant, only one person can claim relief.
Employees can benefit from this relief by furnishing their employers with Tax Relief Cards obtained from the Commissioner General.
Expenses of a private or domestic nature are generally not deductible. For all individuals other than employees, all outgoings and expenses incurred wholly, exclusively, and necessarily in the production of the income that are subject to tax are deductible. These include the following:
- Interest on money borrowed and employed in acquiring assets used during the year and debt that was also incurred in the production of income.
- For trading stock of the business, an allowance is calculated in a specified manner.
- Rent payable on land or buildings occupied for the purpose of acquiring the income.
- Repairs and maintenance expenses for depreciable assets that are incurred in the production of income may be deducted. The amount deducted should not exceed 5% of the written down value of the pool at the end of the year; and is allowed in the order in which the expenses are incurred.
- Research and development (R&D) expenses, irrespective of whether the expense is of a capital nature
- Capital allowance.