Domestic Taxes

Domestic taxes are administered by the Domestic Tax Revenue Division (DTRD) of the Ghana Revenue Authority. It is the merger of the operational wings of the erstwhile Value Added Tax Service and the Internal Revenue Service. Some of the domestic taxes being administered by the DTRD include:


Corporate Tax: This is the tax paid by companies on their profits in the year. The tax rate is 25%.

Personal Income Tax: Self-employed persons are required to pay Income tax at graduated rates in four equal installments. The current Personal Income Tax rates took effect from January 2016.

Pay As You Earn (PAYE): The PAYE contributions are withholdings from salaries of employees in order to satisfy their income tax responsibilities. The PAYE is computed with the Personal Income Tax rates. (See box below)


Chargeable Income (GH¢) Rate (%) Tax (GH¢) Cumulative Chargeable Income (GH¢) Cumulative Tax (GH¢)
First 2,592 Free NIL 2,592.00 NIL
Next 1,296 5 64.80 3,888.00 64.80
Next 1,812 10 181.20 5,700.00 260.00
Next 33,180 17.5 5,806.50 38,880.00 6,052.50
Exceeding 38,880 25
Exceeding 38,880 – 25%


Chargeable Income (GH¢) Rate (%) Tax (GH¢) Cumulative Chargeable Income (GH¢) Cumulative Tax (GH¢)
First  216 NIL NIL 216 NIL
Next 108 5 5.40 324 5.40
Next 151 10 15.10 475 20.50
Next 2,765 17.5 483.88 3240 504.38
Exceeding 3,240 25
Exceeding 3,240 – 25%

Vehicle Income Tax (VIT): This is a tax collected from commercial vehicle operators on quarterly basis.

  • The VIT system makes it obligatory for commercial vehicle operators to buy VIT stickers from any GRA District office on a quarterly basis
  • These stickers are in various categories and rate depending on the vehicle’s passenger capacity and type of operation e.g. taxis, trotros, tour buses, etc.
  • The sticker must be pasted on the front windscreen
  • Monitoring is done with the assistance of the Police Service


This is a tax collected from small-scale self-employed persons in the informal sector on quarterly basis. Under the Tax Stamp System, business operators in the informal sector are grouped according to business type e.g. dressmakers, susu collectors, chop bar owners, butchers etc. The business types are further grouped by class/size to arrive at equitable rates to be paid according to both type and size.


Stamp duty is administered under the Stamp Duty Act, 2005 (Act 689). The Stamp Duty is not a tax on transactions, but on documents brought into being for the purposes of recording transactions. It is therefore a tax on documents or specific instruments which have legal effect.


This is a tax payable by a recipient on the total value of taxable gifts received in a year of assessment. The total value of taxable gift(s) must exceed GH¢50.00 in a year of assessment. Assets on which tax is imposed include land, buildings, money (including foreign currency), shares, bonds and securities, business and business assets. The rate of tax is 5%.


This is a tax paid on the gains made from the realization or sale of a chargeable asset where the gain exceeds GH¢50.00. Assets on which tax is imposed include land, buildings, business assets including goodwill and shares of a resident company. The rate of tax is 15%.


This is the tax paid by rent income earners on the gross amount earned in a year of assessment. The rate of tax is 8% on the gross rent income. It is a final tax.


This is a tax imposed on persons for the extraction of natural resources on or under the surface of the earth. The rate is 5%.


The Communications Service Tax (CST) is a tax levied on charges for the use of communications services that are provided by communications service operators. It is paid by consumers to the communications service providers, who in turn pay all CST collected on a monthly basis.


Value Added Tax (VAT) is a broad-based tax imposed on the expenditure of consumers when they purchase goods and services.  It is collected by businesses which are registered to charge the tax in stages on the “value added” from the manufacturing to retail level  The businesses then account for the tax so collected at the end of every month. The current standard rate of the tax is 15 percent. A zero (0) rate is also applied to all exports.


The National Health Insurance Levy (NHIL) is a levy imposed on goods and services supplied in or imported into the country. All goods and services are subject to the levy unless they are otherwise exempted. The levy is charged at a rate of 2½ on the VAT exclusive selling price of goods supplied or service rendered. The NHIL is collected by registered businesses in the same way as VAT is collected.

VAT Flat Rate Scheme (VFRS)

This is a special method for collecting and accounting for VAT/NHIL. It is designed for traders operating in the retail sector. Under the VFRS, registered retailers of taxable goods shall charge VAT/NHIL at a marginal rate of 3% on the value of each taxable item sold.