2006 BUDGET STATEMENT REDUCTION IN TAX RATES
I. INDIVIDUAL TAX RATES
II. NATIONAL RECONSTRUCTION LEVY
III. CORPORATE TAX RATE
The Commissioner of Internal Revenue wishes to inform the general public particularly individuals and corporate taxpayers that the reduction in the tax rates contained in the 2006 budget statement are in force.
I. ANNUAL INDIVIDUAL TAX RATES
The top marginal rate has been reduced to 25% for 96 million cedis and above. Additionally, the income bands have been stretched as follows:
| CHARGEABLE INCOME | RATE OF TAX | |
| ¢ | ||
| First | 2,400,000 | Free |
| Next | 2,400,000 | 5% |
| " | 12,000,000 | 10% |
| " | 79,200,000 | 17.5% |
| ¢96,000,000 | 25% | |
II. NATIONAL RECONSTRUCTION LEVY
Class A Companies
From 7.5% to 5.5 %
Class B Companies
From 5% to 2.5%
Class C and all other companies
NIL
III. CORPORATE TAX RATE
This has been reduced from From 28% to 25%
The rates became effective from 1st January, 2006.
All paymasters, accountants and finance officers are to take note and implement the reductions for the benefit of all.