There are two main types of taxation that is taxation for the formal sector and taxation for the informal sector. Taxation for the Informal Sector includes the following taxes Vehicle Income Tax (VIT) and Stamp Tax. The taxation for the formal sector also include Capital Gain Tax, Gift Tax, Income Tax, Rent Tax and Stamp Duty.

Under Section 102 of the Act, a person who derives a capital gain from the realisation of a chargeable asset shall within thirty days after the realisation furnish the Commissioner with a return using the appropriate return form viz I.T.Form 305

 WHAT IS GIFT TAX?

This is the tax payable by a recipient on the total value of taxable gifts received in a year of assessment. The total value of taxable gift(s) must exceed GH¢50.00 in a year of assessment. Assets on which tax is imposed include Land, Building, Money including Foreign Currency, Shares, Bonds and Securities, Business and Business Assets. The rate of tax is 5%

Corporate Tax
This is the tax paid by companies on their profits in the year. The rate is 25%.

Personal Income Tax
Self-Employed persons are required to pay Income Tax at graduated rates in four equal instalments.

Pay As You Earn (PAYE)
The PAYE contributions are withholdings from salaries of employees in order to satisfy their income tax responsibilities

The tax is 8% of gross rent income. Institutions, Companies, Embassies are required to withhold the tax and remit to IRS. This is a final tax. Individuals cannot withhold rent tax.

Stamp Duty is administered under the Stamp Duty Act, 2005 (Act 689). It is not a tax on transactions, but on documents brought into being for the purposes of recording transactions. It is therefore a tax on documents or specific instruments which have legal effect.

This is tax collected from commercial vehicle operators on quarterly basis.

The TAX STAMP introduced by the Internal Revenue Service (IRS) came into effect on Tuesday, 1st February 2005.