GROW YOUR BUSINESS IN GHANA
Have an enterprise level payroll department and a HRMS with Employee Self-Service at a per employee cost
Praxima Services Includes
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Full Payroll Outsourcing
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Hybrid Payroll Outsource
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International Payment Management
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Local Filing
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Social Security Filing
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Interact with Local Authorities
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Human Resources Management System
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Integration with all Accounting and Third Party
Software
Benefits of outsourcing to Praxima
Local Tax Compliance
Secure Data Transferring
Responsive Administrators
Increase Productivity
Industry Experts
Running Your Payroll
Focus on Your
Core Business
International Quality Payroll in Ghana
Payroll in Ghana
The Pay-As-You-Earn (PAYE) is a system that withholds income tax from the employees’ salaries by the employer who the remits the tax to the Ghana Revenue Authority by the 15th of the following month. It is also the responsibility of the employer to file tax return on the employee’s behalf by the 30th of April after the end of the calendar year.
TAX RATES | 2024
Taxable income of residents
(Cumulative chargeable income)
GHS Rate
0 - 5,880 0%
5,8801 – 7,200 5%
7,2001 – 8,760 10%
8,7601– 46,760 17.5%
46,761 - 238,760 25%
238,760 - 599,00 30%
Above 600,000 35%
*Non-residents pay a flat rate of 25% in taxes.
STATUTORY FILING | 2024
For all employment income, it will be the employer's responsibility to withhold and pay taxes on a monthly basis. The employer is also required to file tax returns on behalf of the employee by the 31st of March after the calendar year ends. It is required that self-employed persons make advance payments of personal income tax calculated at progressive rates in four equal installments.
SOCIAL SECURITY | 2024
The social security contribution scheme in Ghana is structured into three tiers:
Tier 1 and Tier 2 (Mandatory Contributions)
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Employee Contribution: 5.5% of the basic salary.
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Employer Contribution: 13% of the basic salary.
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Total Contribution: 18.5% of the basic salary.
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First Tier: 13.5% is remitted to the SSNIT within 14 days after the month ends.
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Health Insurance: 2.5% of the 13.5% goes to the NHIA for health insurance.
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Second Tier: 5% is sent to a mandatory occupational scheme managed by NPRA-approved Trustees.
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Tier 3 (Voluntary Contributions)
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Contribution Limits: There are no restrictions on amounts.
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Tax Exemption: Contributions up to 16.5% by both employers and employees are tax-exempt if paid to an approved fund manager.
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Taxable Contributions: Contributions exceeding 16.5% are taxable for the employee, employer, or both.
Expatriates
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Contribution Requirement: You generally must contribute to mandatory social security schemes unless you are exempt.
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Upstream Petroleum Industry: Expatriate employees of contractors and subcontractors are exempt from participating in Ghanaian insurance, compensation, or other social benefit programs.
Tax Residents
An individual will qualify as a tax resident if he/she
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is a Ghana citizen that does not have a permanent home outside Ghana in a calendar year;
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is present in the country for 183 days in any 12-month period; or
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is a citizen with a permanent home in Ghana, but temporarily outside of the country for a period not longer than 365 continuous days. Resident individuals are taxed on a sliding scale from 0% and 25%, while non-residents are subject to a flat rate tax of 20%.
Taxable Income
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Employment Income: Includes all gains and profits from employment, allowances, and benefits (excluding reimbursements for employment-related expenses, medical or dental costs, passage to or from Ghana, and redundancy pay).
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Business Income: Profits from trade, business, profession, or vocation.
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Capital Gains: Gains from the sale of assets and liabilities.
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Other Income: Includes gifts, dividends, fees, annuities, royalties, premiums, and other property earnings.
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Royalties and Receipts: All types of royalties and payments from transactions related to natural resources in Ghana, whether paid within or outside the country.
Non-residents are subject to income tax on money earned in Ghana from trade, business, profession, or work performed in Ghana.
Exempt Income
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Income of a local authority.
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Non-business income of a charitable organization.
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Pensions.
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Gain or profit from the business of operating ships or aircraft by non-resident persons if an equivalent exemption is granted by the person's country of residence to persons resident in Ghana.
Your HRMS is Standard
Employee Self-service
Payslip and tax certificate retrieval. Updating of personal particulars. Leave request and balance enquiries
Records
Employee documents folder. Training records. Heath & Safety records. Disiplinary records. Qualifications, resume and hiring records.
Work Flow
Workflow with different approval levels. Full work flow functionality for leave requests, expense and time-sheets
PAYMENTS, REPORTING & FILING
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Direct payment into employee bank accounts. Emailed password protected pay slips.
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Payment of taxes, benefit providers and other creditors.
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Filing of returns to the authorities.
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Generation and filing of statutory reports.
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General ledger and 100's of customisable reports.
