The Ghana Revenue Authority (GRA) has announced that employees who earn Ghc365 and below as monthly salary will not be taxed.
The GRA in a communique on Monday, January 10, 2022, indicated an amendment of the Income Tax Act, 2021 (Act 1071).
The Authority explained that chargeable income is made up of income from employment, business or investment less any allowable deduction, adding that “chargeable income from each source of income is determined separately.”
“We are happy to inform you that, with the amendment (no. 2) of the Income Tax Act, 2021 (Act 1071), any employee (worker) who receives Ghc365 and below as monthly salary or Ghc 4,380.00 as annual salary is taxed at 0%.”
According to the GRA, the Act is “to amend the Income Tax Act, 2015 (Act 896) to review the rates of income tax for individuals; to reduce the withholding tax rate for sale of unprocessed gold by small scale miners; to increase the threshold for an individual to whom the presumptive tax under the Modified Taxation Scheme applies; to extend the Covid-19 concessions granted in 2021 for further six months in 2022 and to provide for related matters.”
In a related development, the Social Security and National Insurance Trust (SSNIT), in consultation with the National Pensions Regulatory Authority (NPRA); and, in line with Section 80 of the National Pensions Act 2008 (Act 766), has also indexed monthly pensions upward by 10% for the year 2022.
SSNIT has noted that all pensioners on the SSNIT Pension Payroll as of December 31, 2021, will have their monthly pension payments increased by a fixed rate of 9.68% plus a redistributed flat amount of GHS3.44.
Redistribution, SSNIT explained, is a mechanism applied to the indexation rate to cushion members on low pensions in conformity with the solidarity principle of social security.
The effective increase in pensions would, therefore, range from 9.683% for the highest-earning pension to 10.83% for the lowest pension earner.
Accordingly, the highest-earning pensioner, as of December 31, 2021, will receive GHC 142,564.97 and pensioners receiving the minimum pension of GHC 300.00, as of December 31, 2021, will have their monthly pensions increased to GHC 332.48.
The minimum pension for all new pensioners, effective January 2022, will be GHC 300.00.
Read Full Story
Facebook
Twitter
Pinterest
Instagram
Google+
YouTube
LinkedIn
RSS