Do you have tax deducted from your salary any time you are paid?

If you answered yes to any of the above questions, then you could qualify for one or more of the following tax reliefs.

Now read on!

A tax relief is an approved deductible allowance intended to reduce your taxable income and thereby lessen your tax burden.

The relief is granted against your assessable income.

Your personal circumstances are always taken into consideration. For example, a married person with children attending school will normally be more hard pressed than a person who is single and has no responsibilities.

Therefore in all progressive tax administrations, as obtains in Ghana, your position in relation to your commitments is considered by granting you reliefs to lighten the tax burden.

If you declared your personal situation and applied for all reliefs, you could qualify for any of the following:

This relief is granted to an individual with a dependant spouse or at least two dependant children.

The relief is ¢350,000 per annum.

i.This is granted on a maximum of three children attending any recognized registered educational institution in Ghana. A child under this law includes an adopted child or ward.

ii.Both parents cannot claim this relief in respect of the same child/children

iii.The relief is ¢300,000 per child per annum

i.This is granted to persons who prove to the satisfaction of the commissioner that they are disabled.

ii.This relief is granted to disabled persons who receive income from business and employment only.

iii.The relief is 25% of the Disabled person’s income from business and/or employment.

i.This relief is granted to persons who are 60 years and above and are still in employment or business.

ii.It is granted on income from business and employment only.

iii.The relief is ¢350,000 per annum

i. You will enjoy this relief if you prove to the satisfaction of the Commissioner that you have an aged relative who is dependent on you.

ii.It is granted on a maximum of two dependants who are 60 years and above.

iii.The relief does not apply to a dependant’s spouse or child.

iv.Two persons cannot claim this relief in respect of the same aged dependant.

v.The relief if ¢250,000 per relative per year.

i.This relief is granted to persons who have undergone any training to update their professional, technical or vocational skills or knowledge.

ii.The relief is ¢1,000,000

If you insure your life as a taxpayer you will be granted this relief but with the following restrictions.

i.The relief shall not exceed 10% of the sum assured.

ii.The annual premium paid is allowed as relief provided it does not exceed 10% of your income.

iii.The premiums are paid in Ghana currency.

This relief is granted to employees as well as self-employed persons who contribute to the Social Security Scheme in Ghana.

i.Your contribution as an employee shall not exceed 5% of your total emoluments.

ii.Your contribution as a self-employed person shall not exceed 17.5% of your income from business.

ACT 592 grants the following reliefs upfront:-

1.Marriage/Responsibility

2.Children’s Education

3.Old Age

4.Disabled

You can apply by completing the Tax Relief Application Form (IT 21 A)

Every individual taxpayer is qualified to put in a claim for a tax relief.

You must complete and submit your tax returns to the nearest IRS District Office to qualify for a tax relief.

i.You are required to complete and submit an Income Tax Return Form (IT 21) by the end of April every year.

ii.If you are an employee with only employment income your employer will complete and submit the Tax Relief Application Form (IT 21 A) on your behalf.

iii.If you are a self-employed person, submit the form (IT 21) to the IRS District Office nearest you.