View source for Income Tax (Amendment) Act, 2015 (Act 902)

==ARRANGEMENT OF SECTIONS==
:1. First Schedule to Act 896 amended
:2. Second Schedule to Act 896 amended

==PURPOSE==
AN ACT to amend the Income Tax Act, 2015 (Act 896) to provide for a new rate of tax for the chargeable income of a resident individual for a year of assessment, to introduce the rate of withholding tax for a service provided under section 116 (1) (a) (vii), to increase the monetary threshold for an individual to whom a presumptive tax applies and for related matters.

==DATE OF ASSENT==
30th December, 2015.

==ACT==

====1. First Schedule to Act 896 amended====
The Income Tax Act, 2015 (Act 896), referred to in this Act as the principal enactment, is amended in the First Schedule

:(a) by the substitution for subparagraph (1) of paragraph 1 of
::“(1) Subject to subparagraph (3) and the Second Schedule, the chargeable income of a resident individual for a year of assessment is taxed at the following rates:

::{| class="wikitable"
! NO. !! CHARGEABLE INCOME !! RATE OF TAX
|-
| l. || First GH¢2,592 || Nil
|-
| 2. || Next GH¢1,296 || 5 percent
|-
| 3. || Next GH¢1,812 || 10 percent
|-
| 4. || Next GH¢33,180 || 17.5 percent
|-
| 5. || Exceeding GH¢38,880 || 25 percent.”
|}

:(b) by the substitution for subparagraph (6) of paragraph 3 of
::"(6) The chargeable income of a company for a year of assessment from a manufacturing business not included in subparagraphs (1) and (3), other than a manufacturing business located in Accra or Tema, is taxed at the rates indicated below:

::{| class="wikitable"
!Location !! Rate of Income Tax
|-
| (a) Manufacturing business located in the regional capitals of the country || 75 percent of the rate of income tax applicable to other income under sub-paragraph (1)
|-
| (b) Manufacturing business located elsewhere in the country || 50 percent of the rate of income tax applicable to other income under sub-paragraph (1)”.
|}

:(c) by the insertion after paragraph 8 (1) (c) (ii) of
::“(iiA) in the case of service fees referred to in section 116 (1) (a) (vii), fifteen percent;”.


====2. Second Schedule to Act 896 amended====
The principal enactment is amended in the Second Schedule
:(a) by the substitution for paragraph 5 of
::'''5. “Presumptive tax based on turnover'''
::Where presumptive taxation applies to an individual as referred to in paragraph 2 (1) (c) (ii), the tax payable by that individual for a year of assessment under section 1 (1) (a) is three percent of the turnover of the business, where the turnover is more than twenty thousand cedis but does not exceed two hundred thousand cedis.”; and
:(b) by the substitution for paragraph 6 (1) (b) of
::“(b) the turnover of that individual does not exceed two hundred thousand cedis, calculated using the modified cash basis.”.