individuals and companies enjoying tax holidays are required to pay tax of 1% on their chargeable income during the period of the concession An individual can deduct mortgage interest of only one residential premises during his/her lifetime Prof. M. Amidu, Dr. I. Bedi & Mr. A. Ali-Nakyea
Temporary Concessions Activity 2 What is tax holiday available to the oil palm plantation farmer? Prof. M. Amidu, Dr. I. Bedi & Mr. A. Ali-Nakyea
PERSONAL RELIEF Topic One Prof. M. Amidu, Dr. I. Bedi & Mr. A. Ali-Nakyea
Personal Relief A tax relief is legally approved deductible allowance intended to reduce one’s taxable income and thereby lessens the tax burden. • This means that tax relief reduce the tax liability and also lessens the tax burden on taxpayers Prof. M. Amidu, Dr. I. Bedi & Mr. A. Ali- Nakyea
Personal Reliefs Type Limit Value (GHS) Dependent Relief Spouse or at least two children 200 Disability Relief Disability 25% of assessable income from business or employment Aged Relief 60years and above 200 Children Education Maximum of 3children 200 per child Aged- Dependent Maximum of 2 relatives =>60yr 100 per relative Education Relief Contribution to retirement funds Maximum of GHS400 Based on Basic Salary Cost of Training up to 400 5.5% of basic salary Prof. M. Amidu, Dr. I. Bedi & Mr. A. Ali-Nakyea
Summary In this section, you have learnt to: • explain tax exemption • explained personal tax reliefs • explain tax holidays • explain the relationship between tax holidays, exemption and reliefs • discuss the various tax holidays/industry concession • list at least 4 location benefits of taxation Prof. M. Amidu, Dr. I. Bedi & Mr. A. Ali-Nakyea
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