This week at Entrepreneur’s Avenue we will throw a bit more light on Taxation, specifically Personal Reliefs. We always indicate that though paying taxes is your civil responsibility, tax is also an expense and it imperative to leverage all the provisions in the Income Tax Acts and Regulations to reduce this cost.
What is Personal Relief? It is an allowance given to a resident individual to reduce his /her tax burden. With the passage of the Income Tax Amendment 2019 (Act 1007) the Personal Relief in the Fifth Schedule had been amended as follows:
· Marriage/Responsibility (GH¢1,200/year)
This is granted to a person who takes care of his wife or her husband or takes care of at least two children.
· Child education relief (GH¢600/child/year)
It is for a maximum of three children who attend recognised registered educational institution in Ghana.
· Disability relief
It is for disabled persons who earn income from business or employment and it is 25% of assessable income.
· Old age relief
This is granted to persons who are 60 years of age and it is GH¢1,500
· Aged dependent relief
It is granted to an individuals who takes care of a relative who is 60years or above and the amount is GH¢1,000 per year.
· Education relief
This is for individuals to undergo training to upgrade their professional, technical or vocational skills or knowledge and the amount is GH¢2,000 per year.
That said, you can ONLY benefit from the above relief when you apply to GRA for the respective relief and furnish the relief card to your employer. So you may agree with me that we can save some money.