Income Tax Amendments Act, 2023 (Act 1094)
The Parliament of Ghana passed Act 1094 to introduce the below amendments effective 1 May 2023:
Revision of the personal income tax bands and rates
The personal income tax bands and rates for individuals have been revised to align with the 2023 minimum daily wage. There is an introduction of an additional tax rate of 35% on income exceeding GHS600,000 per year.
Increase in the upper limits of quantifiable motor vehicle benefits
The upper limit of motor vehicle benefits to be included in the employment tax computation has been increased as follows:
- Driver and vehicle with fuel - GHS1,500;
- Vehicle with fuel - GHS1,250;
- Vehicle only - GHS625; and
- Fuel only - GHS625.
Increase in optional tax rate on gains from realisation of investment assets by individuals
The tax rate for gains from the realisation of investment assets and gifts received, other than in respect of business or employment is 25% once the individual elects to tax such income separately.
Exemption on withdrawals from retirement funds
Withdrawals from provident funds or personal pension schemes due to Covid-19 pandemic or the current economic hardship by an employee as a result of loss of permanent employment or self-employed persons are exempt from income tax for the year 2023.