The Authority explained that taxable income is made up of income from employment, business or investment less any allowable deductions, adding that “taxable income from each source of income is determined separately.”
“We are pleased to inform you that with the Amendment (No. 2) of the Income Tax Act 2021 (Act 1071), any employee (worker) who receives Ghc 365 and less as monthly salary or 4,380.00 Ghc as annual salary is taxed. at 0%”.
According to the GRA, the law is “amend the Income Tax Act 2015 (Act 896) to revise personal income tax rates; reduce the withholding tax rate for the sale of unprocessed gold by small-scale miners; to increase the threshold for a natural person to whom the flat rate tax applies under the amended tax regime; to extend the Covid-19 concessions granted in 2021 for an additional six months in 2022 and to provide for related matters.”
In a related development, the Social Security and National Insurance Trust (SSNIT), in consultation with the National Pensions Regulatory Authority (NPRA); and, in accordance with Section 80 of the National Pensions Act 2008 (Act 766), has also indexed monthly pensions upwards by 10% for the year 2022.
SSNIT noted that all retirees on the SSNIT payroll as of December 31, 2021 will have their monthly pension payments increased by a fixed rate of 9.68% plus a redistributed lump sum of GHS 3.44.
Redistribution, explained SSNIT, is a mechanism applied to the indexation rate to protect members with low pensions in accordance with the solidarity principle of social security.
The effective increase in pensions would therefore be between 9.683% for the most profitable pension and 10.83% for the lowest pension.
As a result, the highest earning pensioner, as of December 31, 2021, will receive GHC 142,564.97 and pensioners receiving the minimum pension of GHC 300.00, as of December 31, 2021, will see their monthly pension increased to GHC 332.48.
The minimum pension for all new retirees, effective January 2022, will be GHC 300.00.