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Rent (gross) x Interest on bank deposit account x Royalty x xx STATUTORY TOTAL INCOME xxx Less: General Charges: Interest on Mortgage loan x Alimony x Professional subscription x xx NET STATUTORY INCOME xxx Less:Reliefs: Personal Allowance x Children Allowance x Dependant Relative Allowance x Life Assurance x Disable persons Allowance (if any) x xx CHARGEABLE INCOME xxx
NOTE: This is a work in progress. All topics in the syllabus are covered but editing for necessary corrections is in progress. Thanks. 125 22.214.171.124 FORMAT FOR COMPUTING OF CHARGEABLE INCOME FROM EMPLOYMENT IN GHANA. ¢ ¢ Basic Salary xxx Add: Cash Allowances: Inconvenience Allowance xxx Responsibility Allowance xxx Risk Allowance xxx Child Education Allowance xxxxxxTotal Cash Emoluments (TCE) xxx Add: *Car Element (% of TCE) xxx Rent Element (% of TCE) xxxxxxAssessable Income xxx Less: Reliefs Social Security (5% of Basic Salary) xxx Marriage xxx Children‟s Educationxxx Aged Dependants xxx Old Age xxx Professional Training xxx Disabled Person xxx Life Insurance xxx xxxxxx Add: Non-Cash Benefits Cooking Gas xxx Toilet Rolls xxx Drinks xxxxxxChargeable Income xxx5.7.8Table of TaxThe rate of personal Income tax is as follows (with effect from 1stJanuary 2001) First N30,000 at 5% Next N30,000 at 10% Next N50,000 at 15% Next N50,000 at 20% Next N160,000 at 25%
NOTE: This is a work in progress. All topics in the syllabus are covered but editing for necessary corrections is in progress. Thanks. 126 126.96.36.199 Table of Tax for Ghana is as below: The rate of personal income tax is as follows (with effect from 1stJanuary, 2006) 2006 PERSONAL INCOME TAX RATES ANNUAL Chargeable Rate Tax Cumulative Cumulative Income Income Tax ¢ % ¢¢¢First 2,400,000 Free - 2,400,000 - Next 2,400,000 5 120,000 4,800,000 120,000 Next 12,000,000 10 1,200,000 16,800,000 1,320,000 Next 79,200,000 17.5 13,860,000 96,000,000 15,180,000 Exceeding 96,000,000 25 MONTHLY Chargeable Rate Tax Cumulative Cumulative Income Income Tax ¢ % ¢¢¢First 200,000 Free - 200,000 - Next 200,000 5 10,000 400,000 10,000 Next 1,000,000 10 100,000 1,400,000 110,000 Next 6,600,000 17.5 1,155,000 8,000,000 1,265,000 Exceeding 8,000,000 25 5.8Pensions and Gratuities 5.8.1Pension Pension is always received after leaving employment where the tax payer has been in service for more than 5 years, any sum withdrawn or received by an employee from a pension, product or other approved retirement benefits funds are exempted from tax.
NOTE: This is a work in progress. All topics in the syllabus are covered but editing for necessary corrections is in progress. Thanks. 127 5.8.2Gratuities With effect from 1stJanuary 1996 any gratuities received by employee either in the public or private sector are no more subjected to tax in Nigeria. Gratuity is viewed as a sort of reward for work performed by employee during his tenure of office. 5.8.3Redundancy benefits or Compensation for loss of Office Any amount received as redundancy benefits is not taxable in the hands of the recipient. However, the sums received as compensation for loss of office exceeding N10,000 in any year of assessment is chargeable to Capital Gain Tax.