The tax laws of Ghana avails tax reliefs for its citizenry in certain circumstances to minimize the amount they required to pay in tax.
Tax reliefs are basically allowances given to resident individuals to reduce their tax burden.
The little education on tax reliefs has however left this “financial loop” unexplored by many Ghanaians.
There are several tax reliefs an individual can be eligible for. This article discusses some of the key ones that can be taken advantage of.
- 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 however cannot claim this relief in respect of the same child /children.
The relief is GHc 200 per child per year, which can equal GHc600 in total for three children
- Marriage Responsibility
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 marriage responsibility relief is GH¢200 per year.
- 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.
- 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. Two persons cannot claim this relief in respect of the same relative.
The aged dependent relative relief is GH¢100 relative per year.
- 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.
How to apply for a tax relief
A resident individual can apply to the Commissioner-General in a prescribed form.
The relief form can be obtained from any of the GRA’s Domestic Tax Revenue Division offices across the country. The tax relief form can also be downloaded from www.gra.gov.gh.