TaxLawGHby MSL Business School
MSL Business SchoolBanking-sector levy
Ghana Financial Sector Recovery Levy
A current-law guide to the 5% levy on the profit before tax of affected banks, its scope, computation, estimates, quarterly payments and interaction with income tax.
Published by MSL Business School.
MSL Business School — Banking-sector levy at a glance
Controlling answer
The current legal position in one view.
Act 1067 imposes a 5% Financial Sector Recovery Levy on the profit before tax of a bank. It applies to banks regulated under Act 930, but excludes rural banks and community banks. The levy is not deductible when calculating chargeable income under Act 896.
Banking-sector levy
Who pays—and who does not
The statutory definition is tied to a bank regulated under the Banks and Specialised Deposit-Taking Institutions Act, 2016 (Act 930). The levy applies despite a tax holiday or exemption otherwise available to a bank.
| Entity or issue | Act 1067 treatment |
|---|---|
| Bank regulated under Act 930 | Within scope, unless expressly excluded. |
| Rural bank | Excluded. |
| Community bank | Excluded. |
| Other financial institution | Do not assume the levy applies merely because the entity operates in finance; test whether it is a “bank” for Act 1067. |
| Tax holiday or exemption | Does not displace the levy for an affected bank. |
Banking-sector levy
Compute the levy from profit before tax
If an affected bank estimates profit before tax at GHS 10,000,000, the estimated levy is GHS 500,000. The levy is separate from corporate income tax and cannot be deducted in determining chargeable income.
Revisions and audits: where the profit-before-tax figure changes through a revised estimate, annual return or audit adjustment, the levy computation must be reconciled to the corrected base.
Banking-sector levy
Estimate, pay and reconcile
- 01Submit the levy estimate together with the bank's annual income-tax estimate.
- 02Pay the assessed levy on or before 31 March, 30 June, 30 September and 31 December.
- 03Revise the levy position when the underlying profit-before-tax estimate changes.
- 04Reconcile the estimate with the annual position and retain the supporting financial statements and computations.
Act 915 governs administration, collection, enforcement, refunds and penalties. The special three-instalment rule in Act 1067 applied only to 2021 and is not the general rule for later years.
Banking-sector levy
The 2024 review clause did not automatically end the levy
Section 4(2) says the Minister may review the levy after the 2024 year of assessment. It does not contain an expiry date or state that the levy automatically ceases after 2024. The 2026 Budget continues to project receipts under the financial-sector clean-up levy line.
Control point: a Budget projection does not amend Act 1067. Any later repeal, rate change or scope change must be confirmed from an enacted law or valid instrument.
Bank-profit-to-levy reconciliation
The levy estimate, bank accounts and annual income-tax position must use a supportable profit-before-tax base.
Confirm the entity's banking status and whether a statutory exclusion applies for the period.
Match the levy year to the financial statements and income-tax basis period.
Reconcile audited profit before tax to the amount used for the levy without substituting chargeable income.
Prepare the annual estimate with assumptions that agree with the bank's current forecast and income-tax estimate.
Match each scheduled payment to the estimate, payment reference and taxpayer ledger.
Keep the levy outside deductible expenditure when computing corporate income tax.
Update the estimate and final liability when audited profit or the legal status changes.
Reconcile the levy return, payments, financial statements, income-tax computation and outstanding balance.
Frequently asked questions
Ghana Financial Sector Recovery Levy questions
What is the Financial Sector Recovery Levy rate in Ghana?
The rate under Act 1067 is 5% of the profit before tax of an affected bank.
Do rural and community banks pay the levy?
No. Act 1067 excludes rural banks and community banks.
Is the levy deductible for corporate income tax?
No. Act 1067 expressly denies a deduction when chargeable income is determined under Act 896.
Did the levy automatically expire after 2024?
No. The Act permits a ministerial review after 2024 but does not state an automatic expiry.
When are the quarterly payments due?
The general statutory dates are 31 March, 30 June, 30 September and 31 December.
MSL Business School legal reference map
Primary authority and official sources
- Act 1067 — Parliament of GhanaOpen official source →
- 2026 Budget Statement — Ministry of FinanceOpen official source →
- GRA Acts libraryOpen official source →
Institutional publisher
TaxLawGH is MSL Business School's Ghana tax education platform.
MSL Business School publishes TaxLawGH to make Ghana's tax law easier to find, understand and apply.
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