The object of this Regulation is
to amend L.I. 1830 and to
introduce new Personal "Income
Tax Rates.
The current Personal Income Tax
Rates have been in operation
since 2006. Between 2006 and
2010, salaries and wages have
gone up by about ninety-five per
cent (95%).
Consequently, many low income
workers have had their salaries
taxed at a higher income tax
rate than originally
anticipated.
In
2006, workers groups and labour
unions proposed tax exemption
for wage earners earning below
the minimum wage. As a result of
these demands, Government
granted concessionary tax rates
for workers whose salaries fell
below the minimum wage. Further
concessionary tax rates were
granted to workers who earned
salaries not more than five per
cent (5%) above the minimum
wage.
This policy introduced an
additional tax table for low
income earners as indicated in
the two (2) tables below as part
of L.I. 1820:
"The income tax rates applicable
to, resident individuals are"
,
|
Chargeable Income
|
Rate of Tax
|
|
First ¢2,400,000.00
|
Nil |
|
Next ¢2,400,000.00
|
5% |
|
Next ¢12,000,000.00
|
10% |
|
Next ¢79,200,000.00
|
17.5% |
|
Next ¢96,00U,000.00
|
25% |
"The income tax rates applicable
to resident individuals from
employment are"
|
Chargeable Income
|
Rate of Tax
|
|
Up to minimum wage
|
0% |
|
Excess of~~% over
minimum wage
|
2.5% |
Computation of the Personal
Income Tax rates became
difficult because of the
complexities involved in
determining the category of
workers entitled to the
concessionary tax rates.
The proposed amendment is
therefore intended to solve the
following problems:
1.
To eliminate the complexities in
the computation of the Personal
Income Tax Rates.
2.
To grant relief to workers whose
salaries might fall within a
higher tax bracket due to
increased salary levels over the
past four years.
3.
To make the minimum wage tax
free.
HON. DR. KWABENA DUFFUOR
Minister
responsible for Finance
INCOME TAX RATES (AMENDMENT)
REGULATIONS, 2010
IN exercise of the powers
conferred on the Minister
responsible for Finance by
Section 114 of the Internal
Revenue Act 2000, Act 592,
these Regulations are made
this 23rd day of February,
2010.
First Schedule to Act 592
amended
The First Schedule to the
Internal Revenue Act 2000
(Act 592) is amended in Part
One:
(a)
by the substitution for
paragraph I
"I The income tax rates
applicable to resident
individuals are:
|
Chargeable Income
|
|
Rate of Tax
|
|
First |
GH¢1,008.00 |
|
Nil |
|
|
|
Next |
GH¢ 240.00 |
|
5% |
|
Next |
GH¢720.00 |
|
10% |
|
Next |
GH¢14,232.00 |
|
17.5% |
|
Next |
GH¢16,200.00 |
|
25%" |
RON. DR. KWABENADUFFUOR
Minister responsible for Finance
|
.gif)