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Tax relief and rates & qualifications available for teachers(taxpayers)-Check it out and Apply

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Tax relief is a legally approved allowance intended to reduce one’s taxable income and thereby lessening the tax burden. It is intended to cushion the effect of tax on the individual and to make it bearable for him or her to pay the tax. Tax reliefs are subtracted from an individual’s assessable income before applying the tax rate. Thus, it may be described as a statutory deduction from assessable income in ascertaining the chargeable income of an individual and is granted on annual basis. CLICK HERE TO KNOW MORE ABOUT TAX RELIEF IN GHANA

Also, the Internal Revenue Service of Ghana defines tax relief as an approved deductible allowance intended to reduce the taxable income thereby lessening the tax burden of the individual.

The following reliefs are allowed under Section 39 subsections 1 and 2 of the Internal Revenue Act, 2,000

  1. Marriage/Responsibility: This relief is granted to any person with a dependent spouse or any person with at least two dependent children. In this sense, only one spouse is entitled. Thus, the couple must decide which of them would claim this relief. The relief would only be granted on the production of a marriage certificate or a certified copy of registration of the marriage to support the claim.
  2. Disability: This relief is granted to any person with a dependent spouse or any person with at least two dependent children. In this sense, only one spouse is entitled. Thus, the couple must decide which of them would claim this relief. The relief would only be granted on the production of a marriage certificate or a certified copy of registration of the marriage to support the claim.
  3. Disability: This relief is limited to income from business and/or employment only and granted to a person who is certified to be disabled by the Department of Social Welfare only.
  4.  Old age: This relief is granted to person(s) who are sixty (60) years and above and is/are in receipt of income from business and/or employment.        
  5.  Child education: This relief is granted to persons who have children/wards in recognized educational institutions in Ghana. Both parents cannot claim this relief in respect of the same child. The individual may only claim a relief in respect to only three children or wards. This is highly granted only on the production of a certificate issued by a head of the educational institution concerned stating that the child or ward is a pupil in that institution.
  6.   Aged-dependents: This relief is granted up to a maximum of two aged-dependents and only one person can claim this relief in respect of the same aged relative.
  7. Cost of training/Self-improvement: It is given to any individual taxpayer who undergoes training to update his professional, technical, or vocational skills or knowledge.
  8. Social security: This relief is granted to persons who contribute to the Social Security Scheme in Ghana. CLICK HERE TO DOWNLOAD THE TAX RELIEF FORM
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RELIEFS2000-20062007-20102011-PRESENT
Marriage/responsibilityGH₵30 per annumGH₵35 per annumGH₵100 per annum
Disability25% of total income per annum (excluding investment)25% of total income per annum (excluding investment)25% of total income per annum (excluding investment)
Old ageGH₵30 per annumGH₵35 per annumGH₵100 per annum
Children educationGH₵24 per child per annumGH₵30 per child per annumGH₵100 per child per annum
Aged dependent relativeGH₵20 per dependent per annumGH₵20 per dependent per annumGH₵50 per dependent per annum
Cost of trainingGH₵50 per annumGH₵100 per annumGH₵200 per annum
SUMMARY OF TAX RELIEF AND RATES AVAILABLE(YEAR & RATES)

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