Rent gross x Interest on bank deposit account x Royalty x xx STATUTORY TOTAL

Rent gross x interest on bank deposit account x

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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 5.7.7.1 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 xxx xxx Total Cash Emoluments (TCE) xxx Add: * Car Element (% of TCE) xxx Rent Element (% of TCE) xxx xxx Assessable Income xxx Less: Reliefs Social Security (5% of Basic Salary) xxx Marriage xxx Children‟s Education xxx Aged Dependants xxx Old Age xxx Professional Training xxx Disabled Person xxx Life Insurance xxx xxx xxx Add: Non-Cash Benefits Cooking Gas xxx Toilet Rolls xxx Drinks xxx xxx Chargeable Income xxx 5.7.8 Table of Tax The rate of personal Income tax is as follows (with effect from 1 st January 2001) First N 30,000 at 5% Next N 30,000 at 10% Next N 50,000 at 15% Next N 50,000 at 20% Next N 160,000 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 5.7.8.1 Table of Tax for Ghana is as below: The rate of personal income tax is as follows (with effect from 1 st January, 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 5.8 Pensions and Gratuities 5.8.1 Pension 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 5.8.2 Gratuities With effect from 1 st January 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. 5.8.3 Redundancy 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 N 10,000 in any year of assessment is chargeable to Capital Gain Tax.

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