Taxation of international executives
This document sets out the general tax regime in relation to international executives in Ghana. It therefore gives insight into the Ghana Tax Law requirements in relation to employment and other related taxes.
Under the Income Tax Act 2015, (Act 896)), income tax is payable for each year of assessment by a person who has chargeable income for the year and a person who receives a final withholding payment during the year In relation to employment, a person is taxed on all gains or profits from that employment, unless the gain or profit is specifically exempt. Any amount, benefit or allowance is a gain or profit from the employment if it is provided:
International Executives who exercise employment in Ghana will be subject to tax on all benefits that shall be attributable to them as a result of the exercise of the employment irrespective of who pays them or where they are paid from.
Taxes on employment income are administered through the Pay-As-You-Earn system. By this, the employer is required to withhold tax on the gains or profits attributable to the employee and pay same to the Ghana Revenue Authority on monthly basis.
Expatriates are also required to make social security contributions into both the First and Second Tier Schemes. Expatriates contributing to social security in their home countries and are on short term assignment (for period not exceeding thirty-six (36) months), can obtain an exemption from the pensions regulatory bodies in Ghana.
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