Total emoluments paid to an employee or on the employee’s behalf are included in the chargeable income of the employee for any year of assessment. All cash allowances for housing and entertainment are taxable, but reimbursements for expenses actually incurred exclusively on behalf of and for the benefit of the employer are not taxable to the employee.
Chargeable income also includes any benefit derived from the use of a motor vehicle, furnishing, or accommodation provided by the employer. There are no concessions for foreigners.
Non-cash benefits received from employment, except where specifically exempt, are taxable.
Generally, the value of any non-cash benefits is the market value of the benefit, determined on the date that the benefit is taken into account for tax purposes.
Accommodation facilities and vehicle-related benefits are valued as follows:
|Facility provided||Quantification of benefit|
|Provision of accommodation||Value (% of total cash emolument)|
|Accommodation with furnishings||10%|
|Provision of means of transport||Value (% of total cash emolument)|
|Driver and vehicle with fuel||12.5% up to GHS1,500 per month|
|Vehicle with fuel||10% up to GHS1,250 per month|
|Vehicle only||5% up to GHS625 per month|
|Fuel only||5% up to GHS625 per month|
Capital gains are included in chargeable income or taxed at a separate rate upon election. See Capital gains tax in the Other taxes section for more information.
Dividends are subject to a final withholding tax (WHT) of 8% to both residents and non-residents. For non-residents, this will also depend on the provisions of a double tax treaty (DTT) that may exist.
Interest income to individuals by a resident financial institution is exempt from tax. Likewise, the payment of interest to individuals on bonds issued by the government, including interest on treasury bills, is tax exempt.