Ghana sets new VAT rate for medium-sized businesses

Ghana has set a new fixed VAT rate of 3% for businesses with a turnover of between GHS200 000 and GHS500 000 per year. The amendment is one of a number of changes to the tax regulations introduced by Ghanian authorities at the start of 2022.

Additionally, the 0% VAT rating for locally-produced African textile prints was extended until December 2023. In order to qualify for the 0% rate, manufacturers must be approved as a zero-rated supplier. 

Businesses in Ghana should consult a VAT specialist if they are unsure of their obligations under the new regulations. 

Income tax threshold changes

Ghana’s authorities have also revised the income tax rates. Previously, earners were not subject to income tax if they earned less than GHS3 828. Income tax is now chargeable at annual incomes of GHS4 380 or more.

The highest marginal income tax rate (30%) is unchanged, taking effect on any income exceeding GHS240 000. 

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