{"id":38717,"date":"2023-05-02T09:37:09","date_gmt":"2023-05-02T09:37:09","guid":{"rendered":"http:\/\/firmusnew.local\/?p=38717"},"modified":"2023-05-02T09:37:09","modified_gmt":"2023-05-02T09:37:09","slug":"understanding-domestic-business-taxes-in-ghana-a-comprehensive-tax-guide-2023","status":"publish","type":"post","link":"https:\/\/firmusadvisory.com\/de\/understanding-domestic-business-taxes-in-ghana-a-comprehensive-tax-guide-2023\/","title":{"rendered":"Understanding Domestic Business Taxes In Ghana: A Comprehensive Tax Guide 2026"},"content":{"rendered":"\t\t<div data-elementor-type=\"wp-post\" data-elementor-id=\"38717\" class=\"elementor elementor-38717\" data-elementor-settings=\"{&quot;ha_cmc_init_switcher&quot;:&quot;no&quot;,&quot;element_pack_global_tooltip_width&quot;:{&quot;unit&quot;:&quot;px&quot;,&quot;size&quot;:&quot;&quot;,&quot;sizes&quot;:[]},&quot;element_pack_global_tooltip_width_tablet&quot;:{&quot;unit&quot;:&quot;px&quot;,&quot;size&quot;:&quot;&quot;,&quot;sizes&quot;:[]},&quot;element_pack_global_tooltip_width_mobile&quot;:{&quot;unit&quot;:&quot;px&quot;,&quot;size&quot;:&quot;&quot;,&quot;sizes&quot;:[]},&quot;element_pack_global_tooltip_padding&quot;:{&quot;unit&quot;:&quot;px&quot;,&quot;top&quot;:&quot;&quot;,&quot;right&quot;:&quot;&quot;,&quot;bottom&quot;:&quot;&quot;,&quot;left&quot;:&quot;&quot;,&quot;isLinked&quot;:true},&quot;element_pack_global_tooltip_padding_tablet&quot;:{&quot;unit&quot;:&quot;px&quot;,&quot;top&quot;:&quot;&quot;,&quot;right&quot;:&quot;&quot;,&quot;bottom&quot;:&quot;&quot;,&quot;left&quot;:&quot;&quot;,&quot;isLinked&quot;:true},&quot;element_pack_global_tooltip_padding_mobile&quot;:{&quot;unit&quot;:&quot;px&quot;,&quot;top&quot;:&quot;&quot;,&quot;right&quot;:&quot;&quot;,&quot;bottom&quot;:&quot;&quot;,&quot;left&quot;:&quot;&quot;,&quot;isLinked&quot;:true},&quot;element_pack_global_tooltip_border_radius&quot;:{&quot;unit&quot;:&quot;px&quot;,&quot;top&quot;:&quot;&quot;,&quot;right&quot;:&quot;&quot;,&quot;bottom&quot;:&quot;&quot;,&quot;left&quot;:&quot;&quot;,&quot;isLinked&quot;:true},&quot;element_pack_global_tooltip_border_radius_tablet&quot;:{&quot;unit&quot;:&quot;px&quot;,&quot;top&quot;:&quot;&quot;,&quot;right&quot;:&quot;&quot;,&quot;bottom&quot;:&quot;&quot;,&quot;left&quot;:&quot;&quot;,&quot;isLinked&quot;:true},&quot;element_pack_global_tooltip_border_radius_mobile&quot;:{&quot;unit&quot;:&quot;px&quot;,&quot;top&quot;:&quot;&quot;,&quot;right&quot;:&quot;&quot;,&quot;bottom&quot;:&quot;&quot;,&quot;left&quot;:&quot;&quot;,&quot;isLinked&quot;:true}}\" data-elementor-post-type=\"post\">\n\t\t\t\t<div class=\"elementor-element elementor-element-598a6005 e-flex e-con-boxed e-con e-parent\" data-id=\"598a6005\" data-element_type=\"container\" data-e-type=\"container\" data-settings=\"{&quot;_ha_eqh_enable&quot;:false}\">\n\t\t\t\t\t<div class=\"e-con-inner\">\n\t\t\t\t<div class=\"elementor-element elementor-element-4d9dcf55 elementor-widget elementor-widget-text-editor\" data-id=\"4d9dcf55\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t\t\t\t\t\t<p>Businesses must adhere to several domestic and business taxes including corporate income tax, value-added taxes, withholding taxes, and capital gains taxes. Businesses <em>must<\/em> understand Ghana\u2019s tax system and abide by tax laws to prevent legal and financial problems. This article will present a general overview of Ghana\u2019s corporate tax structure, outlining the various domestic taxes, tax rates, and compliance requirements.<\/p><h2>Do you have to pay taxes as a start-up or a new business?<\/h2><p><strong>YES,<\/strong>\u00a0startups and new businesses must pay taxes in Ghana as long as the nature of business is a taxable activity. However, some sectors or business activities may enjoy tax incentives and tax holidays. \u00a0The taxes to be paid cover Pay-As-You-Earn (PAYE), Withholding Tax, Income Tax (Individual and Corporate), and Value Added Taxes among others.<\/p><p>After registering your business at the<a href=\"https:\/\/rgd.gov.gh\/\"> Registrar-General\u2019s Department<\/a>, it is required to also register with the<a href=\"https:\/\/gra.gov.gh\/\"> Ghana Revenue Authority (GRA)<\/a> before undertaking any taxable activity.<\/p><p>The amount of taxes a business pays depends on the type of business, the nature of the business activity, and the volume of transactions carried out within the tax assessment period. \u00a0Let me also quickly add that the nationality of the owners of a business does not affect the amount of corporate income taxes they pay, however, the sales revenue and profitability of the business affect the corporate income taxes that are paid.<\/p><h2>Types of business taxes<\/h2><p>Business taxes are classified under 2 broad categories;<\/p><h3>DIRECT TAXES<\/h3><p>Direct taxes are<em>\u00a0<\/em><em>taxes levied on persons and organizations with the tax burden borne by the person or business<\/em><em>. <\/em>Examples include.<\/p><ul><li>Income taxes -Individual and Corporate<\/li><li>Pay As You Earn<\/li><li>Gift Tax<\/li><li>Capital Gains Tax<\/li><\/ul><h3>INDIRECT TAXES<\/h3><p><em>Indirect taxes are taxes <\/em><em>levied on goods and services with the tax burden borne by the final consumer<\/em><em> of the goods and services<\/em><em>.<\/em> Examples include;<\/p><ul><li>Value-Added Tax<\/li><li>Ghana Education Trust Fund Levy<\/li><li>Electronic Levy<\/li><li>National Health Insurance Levy<\/li><li>Communication Service Tax<\/li><\/ul><p><em>To give further understanding of the above taxes, we have categorized the taxes into which ones apply to b<\/em><em>usinesses and individuals; <\/em><\/p><table><tbody><tr><td width=\"319\"><strong><em>INDIVIDUALS<\/em><\/strong><\/td><td width=\"271\"><strong><em>BUSINESSES<\/em><\/strong><\/td><\/tr><tr><td width=\"319\"><em>P-A-Y-E<\/em><\/td><td width=\"271\"><em>Value added tax<\/em><\/td><\/tr><tr><td width=\"319\"><em>Tax stamp<\/em><\/td><td width=\"271\"><em>Communication service tax<\/em><\/td><\/tr><tr><td width=\"319\"><em>Gift tax<\/em><\/td><td width=\"271\"><em>Mineral royalties\u2019 tax<\/em><\/td><\/tr><tr><td width=\"319\"><em>Vehicle income tax<\/em><\/td><td width=\"271\"><em>Withholding tax<\/em><\/td><\/tr><tr><td width=\"319\"><em>Personal income tax<\/em><\/td><td width=\"271\"><em>Rent tax<\/em><\/td><\/tr><tr><td width=\"319\"><em>Vehicle income tax<\/em><\/td><td width=\"271\"><em>Corporate income tax<\/em><\/td><\/tr><tr><td width=\"319\"><em>Capital gains tax <\/em><\/td><td width=\"271\"><em>Capital gains tax <\/em><\/td><\/tr><\/tbody><\/table><p>Table 1: Individual and Business taxes<\/p><p><em>\u00a0Read Also:<a href=\"http:\/\/firmusnew.local\/2019\/10\/02\/taxes-in-ghana-all-you-need-to-know\/\">Taxation In Ghana: All You Need To Know<\/a><\/em><\/p><h2>CORPORATE INCOME TAX<\/h2><p>Corporate Income Taxes (CIT) are taxes levied on the income and gains from business and investments of companies for a year of assessment or financial year.<\/p><p>The corporate income tax rate is generally 25%. This rate may change per industry.<\/p><table><tbody><tr><td colspan=\"2\" width=\"601\"><strong><em>CORPORATE INCOME TAX RATES PER INDUSTRY IN GHANA<\/em><\/strong><\/td><\/tr><tr><td width=\"491\"><strong>INDUSTRY<\/strong><\/td><td width=\"110\"><strong><em>RATE<\/em><\/strong><\/td><\/tr><tr><td width=\"491\"><em>Income of a Trust<\/em><\/td><td width=\"110\"><em>25%<\/em><\/td><\/tr><tr><td width=\"491\"><em>Companies<\/em><em> principally engaged in the hotel industry<\/em><\/td><td width=\"110\"><em>22%<\/em><\/td><\/tr><tr><td width=\"491\"><em>Companies engaged in the export of non-traditional exports<\/em><\/td><td width=\"110\"><em>8%<\/em><\/td><\/tr><tr><td width=\"491\"><em>Financial institutions from loans granted to farming enterprises<\/em><\/td><td width=\"110\"><em>20%<\/em><\/td><\/tr><tr><td width=\"491\"><em>Financial institutions from loans granted to a leasing company<\/em><\/td><td width=\"110\"><em>20%<\/em><\/td><\/tr><tr><td width=\"491\"><em>Manufacturing companies located in regional capitals (except Accra and Tema)<\/em><\/td><td width=\"110\"><em>18.5%<\/em><\/td><\/tr><tr><td width=\"491\"><em>Manufacturing companies located outside Accra, Tema, and the regional capitals<\/em><\/td><td width=\"110\"><em>12.5%<\/em><\/td><\/tr><tr><td width=\"491\"><em>Free Zone Enterprises after 10 years tax holiday (on domestic sales)<\/em><\/td><td width=\"110\"><em>25%<\/em><\/td><\/tr><tr><td width=\"491\"><em>Free Zone Enterprises after 10 years tax holiday (on the export of goods and services)<\/em><\/td><td width=\"110\"><em>15%<\/em><\/td><\/tr><tr><td width=\"491\"><em>Petroleum income tax<\/em><\/td><td width=\"110\"><em>35%<\/em><\/td><\/tr><tr><td width=\"491\"><em>Mineral income tax<\/em><\/td><td width=\"110\"><em>35%<\/em><\/td><\/tr><tr><td width=\"491\">\u00a0<\/td><td width=\"110\">\u00a0<\/td><\/tr><\/tbody><\/table><p>Table 2: Corporate tax rates per Industry in Ghana<\/p><p><em>\u00a0<\/em><\/p><p>Certain businesses enjoy tax holidays which means these businesses do not pay the actual tax rate during this period.<\/p><table width=\"583\"><tbody><tr><td width=\"315\"><strong><em>Sector\/ Business<\/em><\/strong><\/td><td width=\"268\"><strong><em>Period of Tax Holiday<\/em><\/strong><\/td><\/tr><tr><td width=\"315\"><em>Agro-processing business conducted wholly in the country<\/em><\/td><td width=\"268\"><em>First Five (5) years<\/em><\/td><\/tr><tr><td width=\"315\"><em>Cocoa-by-product business wholly in the country<\/em><\/td><td width=\"268\"><em>First Five (5) years<\/em><\/td><\/tr><tr><td width=\"315\"><em>Tree crop farming<\/em><\/td><td width=\"268\"><em>First Ten (10) years<\/em><\/td><\/tr><tr><td width=\"315\"><em>Cash crops or livestock (excluding cattle)<\/em><\/td><td width=\"268\"><em>First Five (5) years<\/em><\/td><\/tr><tr><td width=\"315\"><em>Cattle farming<\/em><\/td><td width=\"268\"><em>First Ten (10) years<\/em><\/td><\/tr><tr><td width=\"315\"><em>Waste processing business<\/em><\/td><td width=\"268\"><em>First Seven (7) years<\/em><\/td><\/tr><tr><td width=\"315\"><em>Rural Banks<\/em><\/td><td width=\"268\"><em>First Ten (10) years<\/em><\/td><\/tr><tr><td width=\"315\"><em>Real Estate (certified low-cost housing)<\/em><\/td><td width=\"268\"><em>First Five (5) years<\/em><\/td><\/tr><\/tbody><\/table><p>Table 3: Sectors and Tax Holiday Periods<\/p><h3>CIT COMPLIANCE AND PENALTY<\/h3><p>Companies are required by the <a href=\"http:\/\/www.gra.gov.gh\/\">Ghana Revenue Authority<\/a> to file Corporate Income Tax returns by the\u00a0<em>fourth\u00a0<\/em>month after the just-ended year of assessment or financial year.<\/p><p>Companies unable to meet this deadline may apply for an extension to file their Corporate Income Tax (CIT) returns, and this extension should not exceed the\u00a0<em>sixth\u00a0<\/em>month of the year (not more than two months after the filing due date).<\/p><p><em>\u00a0<\/em><em>In other words<\/em><em>, CIT returns for the 2022 year of assessment <\/em><em>are<\/em> <em>to be<\/em><em> lodge<\/em><em>d\/filed<\/em><em> by 30th April 2023. Companies who may apply for an extension have up to 30th June 2023.<\/em><\/p><p>CIT returns are paid quarterly every year of assessment with the final payment due by the fourth month of the ensuing assessment year.<\/p><p>A person is liable to pay interest for failing to pay due tax which is calculated at 125% of the statutory rate, compounded monthly, and applied to the outstanding amount at the start of the period.<\/p><h2>PAY-AS-YOU-EARN (PAYE)<\/h2><p>When individuals receive income from employment (whether in cash or kind), taxes are levied on that income which is withheld by the employer and paid on behalf of the employee. This tax is known as Pay-As-You-Earn (PAYE).<\/p><p>In calculating the PAYE of resident individuals, it is essential to understand that allowances and benefits are added to the salary of the individual whiles deductions such as <a href=\"https:\/\/www.ssnit.org.gh\/\">Social Security and National Insurance Trust (SSNIT)<\/a> and donations for a good cause, are taken from the individual\u2019s basic salary before arriving at the chargeable income (Final amount on which PAYE is calculated). The chargeable income of non-residents is charged at 25% flat.<\/p><p>Pay-As-You-Earn is calculated using the graduated tax rate<\/p><table width=\"434\"><tbody><tr><td><em>\u00a0<\/em><\/td><td><strong><em>CHARGEABLE INCOME<\/em><\/strong><\/td><td><strong><em>RATE %<\/em><\/strong><\/td><td><strong><em>TAX PAYABLE<\/em><\/strong><\/td><\/tr><tr><td><strong><em>\u00a0First<\/em><\/strong><\/td><td><em>402<\/em><\/td><td><em>0<\/em><\/td><td><em>0<\/em><\/td><\/tr><tr><td><strong><em>\u00a0Next<\/em><\/strong><\/td><td><em>110<\/em><\/td><td><em>5<\/em><\/td><td><em>5.50<\/em><\/td><\/tr><tr><td><strong><em>Next<\/em><\/strong><\/td><td><em>130<\/em><\/td><td><em>10<\/em><\/td><td><em>13.00<\/em><\/td><\/tr><tr><td><strong><em>Next<\/em><\/strong><\/td><td><em>3 000.00<\/em><\/td><td><em>17.5<\/em><\/td><td><em>525.00<\/em><\/td><\/tr><tr><td><strong><em>Next<\/em><\/strong><\/td><td><em>16,395.00<\/em><\/td><td><em>25<\/em><\/td><td><em>4,098.75<\/em><\/td><\/tr><tr><td><strong><em>Next<\/em><\/strong><\/td><td><em>29,963.00<\/em><\/td><td><em>30<\/em><\/td><td><em>8,988.90<\/em><\/td><\/tr><tr><td><strong><em>Exceeding<\/em><\/strong><\/td><td><em>50,000.00<\/em><\/td><td><em>35<\/em><\/td><td><em>17,500.00<\/em><\/td><\/tr><\/tbody><\/table><p>Table 4: Current Pay-As-You-Earn Graduated rates<\/p><h3>PAYE COMPLIANCE AND PENALTY<\/h3><p>Pay-As-You-Earn (PAYE) returns must be filed by the 15th of the month following the month to which the return relates (January PAYE should be filed by the 15th of February).<\/p><p>Failure to comply attracts a penalty of 500 currency points and a further penalty of 10 currency points for each day that the failure continues.<\/p><h2>VALUE ADDED TAX<\/h2><p>Every business that provides a service or sells a Vatable product must register with the GRA before they can charge VAT.<\/p><p>To register for VAT in Ghana, one must fill out a VAT application form which can be obtained at any Domestic Tax Revenue Division Office of GRA and attach copies of their business registration documents.<\/p><p>After a successful application, <em>a VAT <\/em><em>certificate<\/em><em> (which should be displayed at the business premises), and a VAT invoice book<\/em><em> will be issued<\/em><em>. In cases where <\/em><em>a <\/em><em>business would like to issue <\/em><em>its<\/em><em> own VAT invoices, they need to write to the Commissioner General for approval.<\/em><\/p><h3>Can you run a business without being VAT registered?<\/h3><p>Unless otherwise exempted, businesses engaged in the supply of goods and services, importation of goods, and supply of imported services are required to charge Value Added Tax.<\/p><p>Value Added Tax is charged on the value added to goods and services.<\/p><p><em>The <\/em><em>t<\/em><em>ax shall be paid;<\/em><\/p><ul><li><em>In the case of a taxable supply by the taxable person making the supply.<\/em><\/li><li><em>In the case of imported goods, by the importer; <\/em><\/li><li><em>In the case of imported services, by the receiver of the service.\u00a0<\/em><\/li><\/ul><h3>VAT STANDARD RATE (VSR)<\/h3><p>Following The Value Added Tax, (Amendment) No. 2 Act, 2022 (Act 1087), there has been a change in the Value Added Tax Rate from\u00a0<em>12.5% to 15%.<\/em>\u00a0National Health Insurance Levy (NHIL), Ghana Education Trust Fund Levy (GETFund Levy), and the Covid -19 Health Recovery Levy (COVID-19 HRL) are separate levies calculated on the chargeable amounts. The NHIL, GETFund Levy, and COVID-19 HRL cannot be deducted as input VAT. These changes have implications for the computation of tax for VAT Registered persons.<\/p><p>New VAT calculation and rates;<\/p><table><tbody><tr><td width=\"198\"><em>Sales<strong> (exclusive of tax)<\/strong><\/em><\/td><td width=\"88\"><em>100.00<\/em><\/td><\/tr><tr><td width=\"198\"><em>GETFUND LEVY<strong> (2.5%)<\/strong><\/em><\/td><td width=\"88\"><em>2.50<\/em><\/td><\/tr><tr><td width=\"198\"><em>NHIL LEVY<strong> (2.5%)<\/strong><\/em><\/td><td width=\"88\"><em>2.50<\/em><\/td><\/tr><tr><td width=\"198\"><em>COVID-19 LEVY<strong> (1.0%)<\/strong><\/em><\/td><td width=\"88\"><em>1.0<\/em><\/td><\/tr><tr><td width=\"198\"><em>Amount inclusive of levies <\/em><\/td><td width=\"88\"><strong><em>106.00<\/em><\/strong><\/td><\/tr><tr><td width=\"198\"><em>VAT Standard <strong>(15%) of (106.00)<\/strong><\/em><\/td><td width=\"88\"><em>15.90<\/em><\/td><\/tr><tr><td width=\"198\"><em>Total Amount inclusive of tax<\/em><\/td><td width=\"88\"><strong><em>121.90<\/em><\/strong><\/td><\/tr><\/tbody><\/table><p>Table 5: VAT Standard Calculation<\/p><h3>VAT FLAT RATE SCHEME (VFRS)<\/h3><p>Retailers of taxable goods with an annual turnover of more than GHC200,000 but not exceeding GHC500,000 are to operate under VFRS. Businesses that meet this threshold shall register under the VFRS and charge a total VAT rate of 4% (3%VAT flat rate plus 1% Covid-19 levy) on taxable sales.<\/p><p><em>Businesses <\/em><em>that<\/em><em> do not meet the threshold, with annual turnover less than GHC200,000, <\/em><em>may <\/em><em>voluntarily register under VFRS.<\/em><\/p><table><tbody><tr><td width=\"198\"><strong><em>Sales (exclusive of tax)<\/em><\/strong><\/td><td width=\"88\"><em>100.00<\/em><\/td><\/tr><tr><td width=\"198\"><em>COVID-19 LEVY<strong> (1.0%)<\/strong><\/em><\/td><td width=\"88\"><em>1.00<\/em><\/td><\/tr><tr><td width=\"198\"><em>VAT Flat Rate <strong>(3.0%)<\/strong><\/em><\/td><td width=\"88\"><em>3.00<\/em><\/td><\/tr><tr><td width=\"198\"><em>Amount inclusive of tax <\/em><\/td><td width=\"88\"><strong><em>104.00<\/em><\/strong><\/td><\/tr><\/tbody><\/table><p>Table 6:VAT flat rate calculation<\/p><h3><em>VAT COMPLIANCE AND PENALTY<\/em><\/h3><p>All Value Added Tax returns and levies should be lodged by the last working day of each month immediately following the month to which the returns relate. (<em>June VAT should be filed by the last working day of July).\u00a0<\/em><\/p><p>Failure to comply attracts a penalty of 500 currency points and a further penalty of 10 currency points for each day that the failure continues.<\/p><h2>WITHHOLDING TAX<\/h2><p>It is a tax deducted by a withholding agent (a person or company required to subtract withholding tax), which the withholding agent accounts for later to the Ghana Revenue Authority.<\/p><p>Registered businesses that make payments to another person for goods or services bought have the right to withhold the tax unless the person is exempted from paying the tax. Only registered businesses are allowed to withhold tax from business transactions. The 15th day of the subsequent month is the deadline for filing withholding tax returns.<\/p><p>Rates of withholding taxes applied to resident individuals&#8217; incomes under Ghanaian domestic tax laws are as follows:<\/p><table><tbody><tr><td colspan=\"2\" width=\"601\"><h3><strong>Withholding Tax rates for incomes of resident persons<\/strong><\/h3><\/td><\/tr><tr><td width=\"491\"><strong>\u00a0<\/strong><\/td><td width=\"110\"><strong><em>RATE<\/em><\/strong><\/td><\/tr><tr><td width=\"491\"><em>Dividends; Interest (excluding individuals and resident financial institutions);<\/em> <em>Rent on residential properties<\/em><em>.<\/em><\/td><td width=\"110\"><em>8%<\/em><\/td><\/tr><tr><td width=\"491\"><em>Rent on non-residential properties<\/em><\/td><td width=\"110\"><em>15%<\/em><\/td><\/tr><tr><td width=\"491\"><em>Fees to resident individuals as invigilators, examiners, and part-time teachers or lecturers, and endorsement fees to individuals<\/em><\/td><td width=\"110\"><em>10<\/em><em>%<\/em><\/td><\/tr><tr><td width=\"491\"><em>Fees or allowances to directors, managers, board members and trustees who are resident individuals<\/em><\/td><td width=\"110\"><em>20%<\/em><\/td><\/tr><tr><td width=\"491\"><em>Commission to insurance, sales, canvassing<\/em><em>,<\/em><em> and lotto agents who are individuals<\/em><\/td><td width=\"110\"><em>1<\/em><em>0%<\/em><\/td><\/tr><tr><td width=\"491\"><em>Supply of services by an entity exceeding GH\u00a22,000 per annu<\/em><em>m; <\/em><em>Supply of general services by an individual<\/em><\/td><td width=\"110\"><em>7<\/em><em>.5%<\/em><\/td><\/tr><tr><td width=\"491\"><em>Supply of goods exceeding GH\u00a22,000 per annum<\/em><\/td><td width=\"110\"><em>3<\/em><em>%<\/em><\/td><\/tr><tr><td width=\"491\"><em>Supply of works exceeding GH\u00a22,000 per annum<\/em><\/td><td width=\"110\"><em>5%<\/em><\/td><\/tr><tr><td width=\"491\"><em>Payments to petroleum subcontractors<\/em><\/td><td width=\"110\"><em>7.<\/em><em>5%<\/em><\/td><\/tr><tr><td width=\"491\"><em>Payments for unprocessed precious minerals<\/em><\/td><td width=\"110\"><em>3%<\/em><\/td><\/tr><tr><td width=\"491\"><em>Royalty, natural resource payments<\/em><\/td><td width=\"110\"><em>1<\/em><em>5%<\/em><\/td><\/tr><\/tbody><\/table><p>Table 7: Withholding tax rates for Resident persons<\/p><p>Withholding tax rates for incomes of non-resident persons under domestic tax laws in Ghana;<\/p><table><tbody><tr><td colspan=\"2\" width=\"601\"><h3><strong>Withholding Tax rates for incomes of<\/strong><strong> non-resident<\/strong><strong> persons<\/strong><\/h3><\/td><\/tr><tr><td width=\"491\"><strong>\u00a0<\/strong><\/td><td width=\"110\"><strong><em>RATE<\/em><\/strong><\/td><\/tr><tr><td width=\"491\"><em>Dividends; Repatriated branch after-tax profit<\/em><em>;<\/em><em> Interest income (excluding individuals)<\/em><\/td><td width=\"110\"><em>8%<\/em><\/td><\/tr><tr><td width=\"491\"><em>Management and technical service fees<\/em><em>;<\/em><em> Goods, works<\/em><em>,<\/em><em> or any services<\/em><\/td><td width=\"110\"><em>20%<\/em><\/td><\/tr><tr><td width=\"491\"><em>Income from telecommunication and transportation business<\/em><em>;<\/em><em> Payments to petroleum subcontractors<\/em><\/td><td width=\"110\"><em>15<\/em><em>%<\/em><\/td><\/tr><tr><td width=\"491\"><em>Royalties, natural resources payments<\/em><em>,<\/em><em> and rent<\/em><em>s;<\/em><em> General insurance premiums<\/em><em>.<\/em><\/td><td width=\"110\"><em>5%<\/em><\/td><\/tr><\/tbody><\/table><p>Table 8: Withholding tax rates for Non-Resident persons<\/p><p><em>The following are <\/em><em>the <\/em><em>final withholding payments:<\/em><\/p><ul><li><em>Dividends paid by a resident company;<\/em><\/li><li><em>Rent payments made by resident individuals under a lease of land or a building;<\/em><\/li><li><em>Rent payment aside rent received in conducting a business of sale or letting;<\/em><\/li><li><em>Payments made to non-resident persons that are subject to withholding other than payments derived through a Ghanaian permanent establishment;<\/em><\/li><li><em>Subcontractor payments under petroleum operations; and<\/em><\/li><li><em>Payments in respect of examination, part-time teaching, supervising examination, and endorsement fee among others.<\/em><\/li><\/ul><p>\u00a0<\/p><h2>CAPITAL GAINS TAX<\/h2><p><img fetchpriority=\"high\" decoding=\"async\" class=\"aligncenter\" src=\"https:\/\/media.istockphoto.com\/id\/843242398\/photo\/hands-holding-documents-with-title-capital-gains-tax-cgt.jpg?s=612x612&amp;w=0&amp;k=20&amp;c=_qaJ1Em7mdAsuobOn32YTdolDp-XRzcYtvnncIDU_RQ=\" alt=\"400+ Cgt Stock Photos, Pictures &amp; Royalty-Free Images - iStock\" width=\"375\" height=\"250\" \/><\/p><p>Capital Gains Tax is a tax levied on the gains from the realization of chargeable assets and liabilities. The amount received from the sale of the asset is not what will be taxed but rather, the gains from the realization of the asset and liability.<\/p><p>Persons who realize gains from the sale of property, stocks, bonds, precious metals, etc., are mandated by law to declare and pay capital gains tax. The tax is payable on valuable items or assets sold at a profit.<\/p><p>Subject to Section 35 of Income Tax Act 896, 2015,\u00a0as amended<\/p><p>A gain made by a person from the realization of an asset is the amount by which:<\/p><p>(a) The sum of the consideration received for the asset exceeds the cost of the asset at the time of realization; or<\/p><p>(b) The sum of the consideration offered for the liability is less than the amount outstanding at the time of realization.<\/p><ol start=\"2\"><li>A loss of a person from the realization of an asset or liability is the amount by which<\/li><\/ol><p>(a) The cost of the asset exceeds the sum of the consideration received for the asset at the time of realization; or<\/p><p>(b) The sum of the consideration offered for the liability is more than the amount outstanding at the time of realization.<\/p><h3>Rate of the Tax<\/h3><p>Individuals and companies are charged different rates of Capital Gain tax.<\/p><p>For Individuals, the gains are treated as an isolated transaction and therefore taxed at a rate of 15% of the net gains realized.<\/p><p>\u00a0<\/p><p><strong><em>Other Taxes and their rates:<\/em><\/strong><\/p><table width=\"661\"><tbody><tr><td width=\"198\"><strong><em>TAX<\/em><\/strong><\/td><td width=\"246\"><strong><em>APPLICATION<\/em><\/strong><\/td><td width=\"217\"><strong><em>RATE<\/em><\/strong><\/td><\/tr><tr><td width=\"198\"><em>Communications Service Tax (CST)<\/em><\/td><td width=\"246\"><em>Charged on the use of communication services<\/em><\/td><td width=\"217\"><em>5%<\/em><\/td><\/tr><tr><td width=\"198\"><em>Rent Tax<\/em><\/td><td width=\"246\"><em>Tax paid on rent income<\/em><\/td><td width=\"217\"><em>8% for residential premises, 15% for non-residential premises<\/em><\/td><\/tr><tr><td width=\"198\"><em>Gift Tax<\/em><\/td><td width=\"246\"><em>Tax paid on gifts received<\/em><\/td><td width=\"217\"><em>Graduated tax rate<\/em><\/td><\/tr><tr><td width=\"198\"><em>Mineral Royalties Tax<\/em><\/td><td width=\"246\"><em>Tax paid on income from engaging in mineral operations<\/em><\/td><td width=\"217\"><em>5% on revenue from mineral operations<\/em><\/td><\/tr><tr><td width=\"198\"><em>Vehicle Income Tax<\/em><\/td><td width=\"246\"><em>Tax levied on commercial transport operators<\/em><\/td><td width=\"217\"><em>The rate depends on the class of vehicle<\/em><\/td><\/tr><tr><td width=\"198\"><em>Tax Stamp<\/em><\/td><td width=\"246\"><em>Specially made for people operating in the informal sector<\/em><\/td><td width=\"217\"><em>Ranges between Ghc3 to Ghc45 and are paid quarterly<\/em><\/td><\/tr><\/tbody><\/table><p>Table 9: Other taxes and their rates<\/p><p><iframe title=\"Avoid Financial Pitfalls: Interest and Penalties Explained\" width=\"800\" height=\"600\" src=\"https:\/\/www.youtube.com\/embed\/hjfBRsjDp0A?feature=oembed\" frameborder=\"0\" allow=\"accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share\" referrerpolicy=\"strict-origin-when-cross-origin\" allowfullscreen><\/iframe><\/p><h2>Concluding Remarks<\/h2><p>Ghana\u2019s domestic tax system comprises various taxes, including income tax, value-added taxes, withholding taxes, rent tax, capital gains tax, and other levies.<\/p><p>Understanding the tax legislation and regulations as a start-up or a business operating in Ghana is essential to ensure compliance, avoidance of penalties, and help in navigating Ghana\u2019s tax system.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t","protected":false},"excerpt":{"rendered":"<p>Businesses must adhere to several domestic and business taxes including corporate income tax, value-added taxes, withholding taxes, and capital gains taxes. Businesses must understand Ghana\u2019s tax system and abide by tax laws to prevent legal and financial problems. This article will present a general overview of Ghana\u2019s corporate tax structure, outlining the various domestic taxes, [&hellip;]<\/p>\n","protected":false},"author":12,"featured_media":38725,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"editor_notices":[],"footnotes":""},"categories":[9],"tags":[134,135,136,137,138,139,140,141,142,143],"coauthors":[238],"class_list":["post-38717","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-compliance","tag-business-finance","tag-business-operations","tag-domestic-business-taxes","tag-financial-planning","tag-ghana-tax-laws","tag-ghana-tax-regulations","tag-tax-compliance","tag-tax-implications","tag-tax-planning","tag-taxation-guide"],"yoast_head":"\n<title>Understanding Domestic Business Taxes In Ghana: A Comprehensive Tax Guide 2026 - Firmus Advisory German<\/title>\n<meta name=\"description\" content=\"This article presents a general 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