Thinking Tax Returns? Think Tax Reliefs too.
The deadline for submission of tax returns is looming near. Have you prepared your returns? Have you claimed all the reliefs available that could go to reduce your income tax liability? There are several reliefs available upon application to the Commissioner-General to help in reducing your personal tax liability.
Types Of Reliefs
The personal reliefs you can take advantage of come in different shapes and forms. These reliefs are described shortly below.
- Marriage / Responsibility Relief
This is a relief of Two Hundred (200) Ghana Cedis per annum granted to a resident individual who takes care of a dependent spouse or at least two (2) dependent children.
- Child Education Relief
This is a relief granted to a resident individual who caters for the education of his child or ward in a recognized, registered educational institution in the country. A child is defined by the Children’s Act, 2016 as an individual under the age of eighteen (18) years. The relief is granted up to a maximum of three (3) children. A child under this law includes an adopted child or ward.
The relief is an amount of two hundred (200) Ghana Cedis per child. So, if you have four children of school going age, then I am sorry to say that you can only claim relief on three of the four children. And don’t forget that only one of two parents can claim this relief in respect of each child.
- Disability relief
This is a relief granted to persons who prove to the satisfaction of the Commissioner-General that they are disabled. Disabled persons who receive income from business or employment qualify to receive this relief.
The relief is twenty-five (25) percent of the disabled person’s income from business or employment.
- Old Age Relief
This is a relief of two hundred (200) Ghana Cedis per year granted to individuals who are sixty (60) years of age and above.
- Aged Dependent Relative Relief
You will be entitled to this relief if you are resident in Ghana and take care of a relative who is sixty (60) years old and above. This relief is granted to a maximum of two (2) relatives. This relief does not apply to dependent spouse or child and two (2) persons cannot claim this relief in respect of the same relative. The relief is One Hundred (100) Ghana Cedis per year.
- Educational relief
If you are undergoing training to update your professional, technical, or vocational skills or knowledge, then you may consider applying for educational relief. The relief is capped at Four Hundred (400) Ghana Cedis per year.