Paying taxes is something we all have to do, but did you know there are ways to reduce how much tax you pay? The Ghanaian government understands that people have different financial responsibilities and in acknowledgment of these challenges, the Income Tax Act, 2015 (Act 896) provides personal reliefs to reduce the tax burden on individuals; basically, discounts on your taxes.
These tax reliefs are there to ease your financial burden and make sure the system is fair. If you qualify, you can pay less tax and keep more money in your pocket. Let’s break it down :
- Relief for Married People & Parents
If you’re married and supporting your spouse or have at least two dependent children, you get a tax relief of GH₵1,200 per year. This helps ease the financial load of caring for your loved ones.
- Relief for Persons with Disabilities
If you have a disability and earn income from a job or business, you get a 25% tax relief on that income. This means if you make GH₵10,000 from work, GH₵2,500 won’t be taxed.
Note: This doesn’t apply to money made from investments (like stocks or rental income).
- Relief for Senior Citizens
If you’re 60 years or older, you get a tax relief of GH₵1,500 per year. This applies to all types of income, whether it’s from a job, business, or investments. This is the Government’s way of saying “thank you” for your contributions over the years.
- Education Relief (For Parents & Guardians)
If you’re paying for your child’s or ward’s education in a registered school in Ghana, you can get GH₵600 per child (up to 3 children).
However if both parents are supporting the child, only one of them can claim this relief, so plan wisely.
- Relief for Taking Care of Elderly Relatives
If you are supporting a dependent relative who is 60 years or older, you can get GH₵1,000 per dependent (up to two relatives). This does NOT apply to spouses or children. If multiple people (like siblings) are supporting the same elderly relative, only one person can claim the relief.
- Training & Professional Development Relief
If you’re paying for training or courses to improve your skills for work, you can claim GH₵2,000 per year to reduce your taxable income.
This is great for professionals looking to upgrade their skills and stay competitive in their field.
How to Claim These Reliefs?
To take advantage of these tax reliefs, you need to apply to the Ghana Revenue Authority (GRA) and provide proof that you qualify (like receipts or supporting documents).
Additional Notes
To claim these reliefs, it’s essential to understand who qualifies as a dependent. A dependent child, spouse, or relative is someone who relies on you for their basic needs, such as food, shelter, and clothing.
Furthermore, the reliefs are deducted annually, covering the entire period of assessment, rather than monthly or for any other period.
Final Thoughts
Tax reliefs are a great way to reduce your tax bill and keep more of your hard-earned money. If you qualify for any of these, make sure to apply and take full advantage because every cedi counts.
