Paying taxes is a painful thing to do… Letting go of your money to the government is not an easy feeling.
However, as a citizen or resident of Ghana, it is one’s duty to pay taxes.
Recognizing the fact that letting go of a portion of your income is a painful thing to do, the government, through the Ghana Revenue Authority has approved instances where an individual can claim tax relief.
Tax relief is an allowance given to a resident individual to reduce his or her tax burden.
For instance, if you are to pay GHS 1,000 as tax, if the government gives you GHS 200 as tax relief it means that your tax burden is now GHS 800.
Now as per the law, the Ghana government gives out tax reliefs.
Below are the types of reliefs you are entitled to if you’re a taxpayer:
Upfront reliefs
A. Marriage / responsibility relief
This relief is granted to a resident individual who takes care of his wife or her husband or takes care of at least two children.
The relief is GH¢200 per year.
B. Child education relief
This is granted to a resident individual who pays his or her child’s school fees. the relief is granted to a maximum of three children attending any recognized registered educational institution in Ghana. A child under this law includes an adopted child or ward.
Both parents cannot claim this relief in respect of the same child /children
The relief is GH¢200 per child per year.
C. Disability relief
This is granted to persons who prove to the satisfaction of the Commissioner-General that they are disabled
This relief is granted to disabled persons who receive income from business or employment only
The relief is 25% of the disabled person’s income from business or employment
D. Old age relief
This relief is granted to persons who are 60 years of age
The relief is GH¢200 per year.
E. Aged dependent relative relief
This relief is granted to a resident individual who takes care of a relative who is sixty years old and above.
The relief is granted up to a maximum of two relatives
The relief does not apply to a dependent’s spouse or child
Two persons cannot claim this relief in respect of the same relative.
The relief is GH¢100 relative per year.
Other Reliefs
F. Educational relief
A resident individual can also be granted educational relief if that person undergoes training to update his/her professional, technical or vocational skills or knowledge.
The relief is GH¢200 per year.
If you want to claim any of the above tax reliefs you can apply to the Commissioner-General in a prescribed form. The relief is given with respect to your personal situation as stated on your application form.
The relief form can be obtained from any of the GRA’s Domestic Tax Revenue Division offices across the country.
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