WHAT IS A TAX RELIEF?
A tax relief is an approved deductible allowance intended to reduce your taxable income and thereby lessen your tax burden.

Your personal circumstances are always taken into consideration. For example, a married person with children attending school will normally be harder pressed than a single person with no dependants.

Therefore in all progressive tax administrations, as obtains in Ghana, your position in relation to your commitments is considered by granting you reliefs to lighten the tax burden.

TYPES OF RELIEFS
The following reliefs are allowed under the ACT.

1. MARRIAGE/RESPONSIBILITY
a. The relief is GH¢35 per annum.
b. It is granted to any person with a dependant spouse.
c. It is granted to any person with at least two dependant children

2. DISABLED
a. The relief is limited to 25% of income from business and/or employment only.
b. It is granted to a person who is certified to be disabled by the Department of Social Welfare.

3. OLD AGE
a. The relief is GH¢35 per annum or the total income, whichever is less.
b. The relief is granted to persons who are sixty (60) years and above and are in receipt of income from business and/or employment.

4. CHILD EDUCATION
a. The relief is GH¢30 per child per annum up to a maximum of three (3).
b. It is granted to persons who have children/wards in recognized educational institutions in Ghana.
c. Both parents cannot claim this relief in respect of the same child

5. AGED-DEPENDANT
a. A taxpayer who provides the necessaries of life for an aged relative who is 60 years and above (other than a spouse or child) qualifies for a relief of GH¢25 per aged relative.
b. The relief is granted up to a maximum of two aged-dependants
c. Only one person can claim this relief in respect of the same aged relative.

6. COST OF TRAINING/SELF-IMPROVEMENT
Any individual taxpayer who undergoes training to update his professional, technical or vocational skills or knowledge is eligible for a relief of GH¢100 or the cost training whichever is less.

7. SOCIAL SECURITY
a. This is granted to persons who contribute to the Social Security Scheme in Ghana.
b. The relief is 5% of your income from employment or 17½% of income from business.

8. LIFE ASSURANCE
a. The scheme must be invested in Ghana
b. The annual premium paid is allowed as relief provided it does not exceed 10% of the capital sum assured or 10% of total income.

WHO QUALIFIES FOR A TAX RELIEF?
Every individual taxpayer is qualified to put in a claim for a Tax Relief. You must complete and submit your tax returns to the IRS to qualify for a tax relief.

UP-FRONT GRANTING OF TAX RELIEFS TO EMPLOYEES
ACT 592 grants OLD AGE, MARRIAGE/RESPONSIBILITY, CHILD EDUCATION and DISABLED reliefs UP-FRONT through the administration of TAX RELIEF APPLICATION FORM (IT 21A)

• Employers are advised to file this form on behalf of all their employees

HOW DO I CLAIM A TAX RELIEF UP-FRONT?
If you qualify to receive any relief UP-FRONT, then your employer is required to complete and submit the Income Tax Return Form IT 21A on your behalf

HOW DO I CLAIM ANY OF THE OTHER RELEIFS AND WHEN?
If you have been granted other reliefs up-front, then complete and submit an Income Tax Return Form (IT Form 21) at the end of every Year of Assessment and attach the Extract of the Employee Return (IT Form 111B). On the other hand If you have not been granted any reliefs up-front, then you are to complete and submit an Income Tax Return Form (IT Form 21) tax deduction form (IT 51 supplementary) to indicate that taxes have been deducted form your salary.

Submit these forms and other supporting documents to the Tax Office nearest you to claim your reliefs
Annual Returns must be filed not later than four months after the end of the Year of Assessment.

• You may file a tax return if you have other sources of income in addition to your employment income.

Returns must be filed by 30th April of the following year.