CORPORATE TAX RATES

WITHHOLDING TAX RATES

TAXATION OF OVERTIME EARNINGS

IRS -15

This leaflet is intended to serve as a guide to employers, suppliers, consultants,

paymasters, employees and the general public to ensure uniform application for
smooth business operations and enhance tax compliance.

INTERNAL REVENUE SERVICE

CORPORATE TAX RATES

The Commissioner wishes to remind all corporate bodies of the prevailing tax rates
to ensure smooth business operations and enhance tax compliance

1. General Corporate Tax Rate 25%

II Tax Rate By Sector Rate

A. Companies listed on the Ghana

Stock Exchange 22%
B. Rural Banks (after 10 years tax holiday) 8%

C. Free Zone Enterprise /Developers

(after10 years of operation) 8%

D Manufacturing Companies
i Located in Accra /Tema 25%

ii Located in all other Regional

Capitals 18.75%

iii Located outside Regional Capitals 12.50%

E. Hotel Industry 22%

F. Financial Institutions

i Income derived from loans granted

to Farming enterprises 20%

ii Income derived from loans granted to

Leasing Companies 20%

G. Companies engaged in non-

traditional exports 8%

H: Agro Processing Companies Established in Ghana

from 1st January, 2004

i Located in Accra /Tema (after 5years tax

holiday) 20%

ii Located in other Regional Capitals

(Excluding Tamale, Wa, Bolga) 10%

iii Located In Northern, Upper West and Nil

Upper East

I Companies Producing Cocoa By- Rate same as in H above

Products from Cocoa waste (after 5
years tax holiday)

WITHHOLDING TAX RATES - FIRST SCHEDULE OF ACT 592 (AS

AMENDED)
1. WITHHOLDING TAXES - FINAL

TYPE RATE
a. Dividends paid to a Resident Person 8%
b. Fees to a Resident part-time teacher,
lecturer, examiner, examination invigilator
or examination supervisor 10%
c Endorsement fees to a Resident Person
for recommending a product, or to
promote sales at the expense of competing
product in electronic, print media
or otherwise. 10%

d. Dividends and interest paid to Non-

Resident Person 8%

e. Royalties, natural resource payment

and rent to a Non-Resident Person 10%

f. Management and Technical Service

fees to a Non-Resident Person 15%

g. Premiums paid to Non –resident insurers 5%

h. Payment for goods and service to a

Non –Resident without Permanent Establishment 15%

2. WITHHOLDING TAXES – ON ACCOUNT

 TYPE RATE
a. Interest to a Resident Person other than an
individual 8%

b. Commission to a Resident Insurance, Sales or

Canvassing Agent 10%

c. Fees, emoluments, benefits paid in cash or ‘

in kind to a Resident Director, Manager or
Board member of a company or body of persons
who is not a full time employee of such company
or body of persons. 10%

d. Commission to a Resident Lotto Receiver or

Agent 5%

e. Payment for goods and services to a Non- Resident

Person with permanent establishment 15%

F. Payment for goods and services to a Resident Person 5%

TAXATION OF OVERTIME EARNINGS

(APPLICABLE TO JUNIOR OFFICERS ONLY)

*Income for qualifying Junior Staff GH¢9,600(annual)

RATES OF MONTHLY OVERTIME TAX

Earning up to 120 currency point (ie GH¢120.00) tax @2.5%

More than 120 currency point up to

400 currency point (ie GH¢120.00 - GH¢400.00) tax @ 10%

Exceeding 400 currency point (ie GH¢ Add excess to salary and
tax at normal rate

NOTE
* 1 Currency Point equals GH¢1.00
 ISSUED BY INTERNAL REVENUE SERVICE

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