TaxLawGHby MSL Business School
MSL Business SchoolGhana tax authority guide
Withholding Tax in Ghana
The definitive guide to Ghana's domestic and treaty withholding rates, thresholds, final-tax treatment, credits, online filing obligations and resident and non-resident payments.
Published and prepared by MSL Business School through TaxLawGH, its tax and fiscal policy education platform.
MSL Business School Tax snapshot
Resident contract: goods
3%Contract value exceeds GHS 2,000 · advance tax credit (non-final)Resident contract: works
5%Contract value exceeds GHS 2,000 · advance tax credit (non-final)Resident contract: services
7.5%Contract value exceeds GHS 2,000 · advance tax credit (non-final)Resident dividends
8%Final withholding payment, subject to the statutory exceptionFiling and payment
15thWithin 15 days after the end of the withholding monthNon-resident contracts
20%Domestic rate for goods, works or services; treaty relief may affect qualifying paymentsTaxLawGH by MSL Business SchoolThis print view is a summary. Use taxlawgh.com/ghana-withholding-tax for the complete, current guide, tables and interactive navigation.
The controlling framework
Ghana does not have one withholding tax rate.
The correct rate follows the legal character of the payment, the residence and status of the recipient, the identity of the payer, any statutory exemption, and—where the recipient is non-resident—whether a double tax agreement applies. The payer deducts the prescribed amount at source and reports it as tax paid for the recipient.
The person required to deduct the tax, file the recipient-level return online and pay the amount withheld.
The person from whose payment tax is deducted and whose electronic tax-credit record is created from the agent's filing.
The deduction settles the income-tax liability on that payment, subject to the statutory final-payment rules.
The deduction is an advance tax credit against the recipient's income-tax liability for the year.
MSL Business SchoolTax rate reference
Ghana withholding tax rates for resident persons
These are the current domestic rates under the Income Tax Act, 2015 (Act 896), as amended. The technical statutory references are consolidated at the bottom of this guide.
| Payment to resident person | Rate | Treatment | Key condition |
|---|---|---|---|
| Dividend paid by a resident company | 8% | Final | The 25% resident inter-company exemption is subject to statutory exceptions, including the special petroleum- and mineral-operation rules. |
| Interest, excluding individuals and resident financial institutions | 8% | Non-final | Applies to taxable interest within this category; exempt amounts remain outside withholding. |
| Investment rent: residential property | 8% | Final | Rent under a lease of Ghanaian land or a building that is not received in conducting a business of sale or letting. |
| Investment rent: non-residential property | 15% | Final | Rent under a lease of Ghanaian land or a building that is not received in conducting a business of sale or letting. |
| Royalty or natural resource payment | 15% | Non-final | Payment must have a source in Ghana. |
| Director, manager, trustee or board-member fees to a resident individual | 20% | Non-final | Applies to the specified office-holder service fees. |
| Examining, invigilating, supervising examinations, or part-time teaching or lecturing | 10% | Final | Payment to a resident individual. |
| Endorsement fees | 10% | Final | Payment to a resident individual. |
| Commission to a resident lotto agent, sales agent or insurance agent | 10% | Non-final | Commission for the specified agency activity; this is not tax on lottery winnings. |
| Other service fees paid to a resident individual | 7.5% | Non-final | Applies where a more specific service-fee category does not. |
| Payment by a resident person other than an individual for goods supplied by another resident person | 3% | Non-final | Contract-value threshold and statutory exclusions apply. |
| Payment by a resident person other than an individual for works supplied by another resident person | 5% | Non-final | Contract-value threshold and statutory exclusions apply. |
| Payment by a resident person other than an individual for services supplied by another resident person | 7.5% | Non-final | Contract-value threshold and statutory exclusions apply. |
| Payment to a resident petroleum subcontractor | 7.5% | Non-final | Special petroleum-operation rule; only the corresponding payment to a non-resident subcontractor is final. |
| Payment for unprocessed rough diamonds or another mineral prescribed by Regulations | 1.5% | Non-final | Purchases of unprocessed gold are outside the current mineral-purchase withholding rule. |
| Consideration on realisation of an asset or liability | 3% | Non-final | Special scope, notification and exclusion conditions apply. |
“Non-final” means the withholding is paid on account as an advance credit for the recipient. The recipient must still apply the ordinary income-tax rules to the underlying income and confirm that the credit appears correctly in the GRA online tax system.
Non-resident recipients
Domestic withholding rates for non-resident persons
A covered payment to a non-resident is generally a final withholding payment when the income is not derived through a Ghanaian permanent establishment. A valid double tax agreement can reduce specified domestic rates when its legal conditions are met.
| Payment to non-resident person | Domestic rate | Key point |
|---|---|---|
| Dividend | 8% | Final where not derived through a Ghanaian permanent establishment; treaty relief can apply. |
| Interest | 8% | Final where not derived through a Ghanaian permanent establishment, unless exempt or reduced under a treaty. |
| Rent, royalty or natural resource payment | 15% | Final where not derived through a Ghanaian permanent establishment; treaty relief can apply. |
| Management or technical service fee | 20% | Final where not derived through a Ghanaian permanent establishment; a treaty can prescribe a lower rate. |
| Goods, works or services under contract | 20% | Final where not derived through a Ghanaian permanent establishment. The payer must notify the Commissioner-General within 30 days after the contract date. |
| General insurance premium | 5% | Final where not derived through a Ghanaian permanent establishment. |
| Telecommunication or transportation business payment | 15% | Final where not derived through a Ghanaian permanent establishment; special source and business rules apply. |
| Petroleum subcontractor payment | 15% | Final under the special petroleum-operation rule. |
| Repatriated branch after-tax profits | 8% | Final tax under the branch-profit rule. |
| Consideration on realisation of an asset or liability | 10% | Final where not derived through a Ghanaian permanent establishment, subject to the statutory scope rules. |
Treaty relief is not automatic. Confirm the applicable agreement, tax residence, beneficial ownership where relevant, the legal classification of the payment and whether the income is connected with a permanent establishment in Ghana before applying a reduced rate.
MSL Business SchoolTreaty rate reference
Ghana treaty withholding tax rates
The table states the maximum Ghana-source tax permitted by the bilateral income-tax agreements covered in this guide for a payment to a resident beneficial owner of the other treaty state. It must be read with the domestic rates above, the full treaty conditions and confirmation that the relevant agreement is in force for the payment period.
A treaty ceiling cannot increase Ghana's domestic rate. The amount withheld is the lower of the applicable domestic rate and the treaty maximum. For example, a UK portfolio dividend is subject to Ghana's 8% domestic rate because it is lower than the treaty's 15% ceiling; a dividend to a qualifying UK company can be reduced to the treaty ceiling of 7.5%.
| Other treaty state | Dividends: general | Dividends: qualifying company | Interest | Royalties | Technical / management fees | Condition for qualifying-company dividend rate |
|---|---|---|---|---|---|---|
| Belgium | 15% | 5% | 10% | 10% | 10% | Company directly holds at least 10% of the payer's capital. |
| Czech Republic | 6% | 6% | 10% | 8% | 8% | One 6% treaty ceiling applies to dividends; there is no separate higher portfolio rate. |
| Denmark | 15% | 5% | 8%† | 8% | 8% | Company directly holds at least 10% of the payer's capital. |
| France | 15% | 7.5% | 12.5%† | 12.5% | 10% | Company directly or indirectly holds at least 10% of the payer's capital. |
| Germany | 15% | 5% | 10%† | 8% | 8% | Company, other than a partnership, directly holds at least 10% of the payer's capital. |
| Italy | 15% | 5% | 10% | 10% | 10% | Company, other than a partnership, directly holds at least 10% of the payer's capital. |
| Mauritius | 7% | 7% | 7%† | 8% | 10% | One 7% treaty ceiling applies to dividends. |
| Morocco | 10% | 5% | 10%† | 10% | 10% | Company directly holds at least 10% of the payer's capital. |
| Netherlands | 10% | 5% | 8%† | 8% | 8% | Company, other than a partnership, directly holds at least 10% of the payer's capital. |
| Qatar | 7% | 5% | 7%† | 10% | 10% | Company directly holds at least 25% of the payer's capital. |
| Singapore | 7% | 7% | 7%† | 7% | 10% | One 7% treaty ceiling applies to dividends. |
| South Africa | 15% | 5% | 10% / 5% bank† | 10% | 10% | Company directly holds at least 10% of the payer's capital; the 5% interest ceiling is for a bank resident in the other state. |
| Switzerland | 15% | 5% | 10%† | 8% | 8% | Company, other than a partnership, directly holds at least 10% of the payer's capital. |
| United Kingdom | 15% | 7.5% | 12.5%† | 12.5% | 10% | Company directly or indirectly controls at least 10% of the payer's voting power. |
† The stated interest rate is the general treaty ceiling. Several treaties provide a 0% Ghana-source rate for specified government, central-bank, public-body, export-credit, government-guaranteed or institutional debt. The wording and eligible bodies differ by treaty. Some treaties also contain special dividend exemptions or reduced rates for named government or institutional investors. Apply the exact article before using an exemption.
The conditions matter: establish treaty residence for the relevant period, beneficial ownership, the correct treaty classification, any subject-to-tax requirement, and the absence of an effective connection with a Ghanaian permanent establishment. A signed agreement that has not entered into force cannot reduce Ghana withholding tax.
ECOWAS multilateral agreement
The ECOWAS Supplementary Act on the avoidance of double taxation provides the following source-state ceilings for qualifying payments between current ECOWAS Member States. For a Ghana-source payment, the recipient must be resident in—and meet the relevant treaty conditions in—another Member State.
| Covered current ECOWAS partner states | Dividends | Interest | Royalties | Technical service fees |
|---|---|---|---|---|
| Benin, Cabo Verde, Côte d’Ivoire, The Gambia, Guinea, Guinea-Bissau, Liberia, Nigeria, Senegal, Sierra Leone and Togo | 10% | 10%† | 10% | 5% individual 10% company |
The ECOWAS interest article provides specified government, central-bank and government-guaranteed debt exemptions. As with a bilateral treaty, the lower applicable Ghana domestic rate prevails.
Burkina Faso, Mali and Niger: their withdrawal from ECOWAS became effective on 29 January 2025. They are therefore not included as current Member States in this table. Do not apply the ECOWAS rate to a current payment involving any of the three states without confirmation of the post-withdrawal legal position from the competent authority.
Four eligibility checks before seeking the treaty rate
- 01Confirm that the agreement is in force
Use the agreement that legally applies to the recipient's state and the relevant payment period.
- 02Establish residence and treaty entitlement
The recipient must be resident in Ghana or the treaty partner as the agreement requires, be the beneficial owner of the income and satisfy any limitation-of-benefits, liable-to-tax, subject-to-tax or ownership condition.
- 03Classify the payment and test the Ghana connection
Identify the correct treaty article. A reduced withholding rate does not apply where the income is effectively connected with the recipient's permanent establishment in Ghana.
- 04Compare treaty and domestic law
The applicable deduction is the lower of Ghana's domestic rate and the treaty ceiling. A treaty ceiling cannot increase the domestic rate.
How a non-resident obtains approval for the treaty rate
Under the GRA practice note on obtaining double-taxation relief, the reduced rate is supported through a formal approval process; the table alone is not the approval.
- 01Complete the non-resident Certificate of Residence
The certificate must be completed for the claimant and endorsed with the official stamp or seal of the tax authority in the non-resident's country of residence.
- 02Address a formal application to the Commissioner-General
The taxpayer or its representative submits the application with the endorsed Certificate of Residence and the facts needed to establish entitlement under the applicable agreement.
- 03Attach evidence for the income and rate claimed
Use the relevant transaction evidence: for example, the Ghana contract for royalties or technical-service fees, evidence of shareholding for dividends, or the loan agreement for interest.
- 04Give the approval or ruling to the withholding agent
After the GRA issues its approval or ruling, the non-resident provides a copy to the Ghanaian withholding agent so the approved treaty rate is reflected in the deduction.
Practice point: complete the approval process before the payment is made. Keep the application, endorsed residence certificate, supporting agreement, ownership evidence where relevant, GRA approval and the final withholding calculation in the transaction file.
Tax character
Is the deduction final tax or an advance credit?
The legislation identifies the payments for which withholding settles the tax on that payment. Other deductions are non-final credits against the recipient's income tax for the year.
Dividends paid by a resident company; investment rent not received in a business of sale or letting; payments for examining, invigilating or supervising examinations, part-time teaching or lecturing, and endorsements; and covered non-resident payments not derived through a Ghanaian permanent establishment.
Resident contract payments for goods, works and services; non-exempt interest; royalties and natural resource payments; director and general service fees; agent commissions; resident petroleum-subcontractor payments; and other deductions that the legislation does not make final.
Why this matters: a final payment is excluded from the recipient's ordinary assessable-income calculation under the final-tax rule. A non-final deduction does not replace the annual tax calculation; it is evidence-backed tax already paid.
Contract rule
The GHS 2,000 threshold and the withholding base
For a payment by a resident person other than an individual to another resident person under a contract for goods, works or services, withholding applies where the contract value exceeds GHS 2,000. Related contracts for the same goods, works or services are aggregated for the threshold rule.
- 01Classify the supply
Goods, works and services carry different resident rates. Use the substance of the contract, not the invoice label alone.
- 02Test the threshold and exclusions
The GHS 2,000 rule belongs to the resident contract-payment provision. It does not create a universal threshold for every withholding category.
- 03Apply the rate to the contract payment
Where VAT and statutory levies are separately stated, income-tax withholding is calculated on the contract's taxable value before those indirect taxes.
- 04Keep VAT withholding separate
An appointed VAT withholding agent may also withhold 7% of the taxable output value. That is a different tax mechanism from income-tax withholding.
Important exclusions: specified payments fall outside this resident contract rule, including qualifying insurance premiums, trading stock that is trading stock of both payer and recipient, and payments covered by a written exemption from the Commissioner-General. Apply the exact statutory conditions.
MSL Business SchoolWorked example
How Ghana withholding tax is calculated
Example 1A: resident service contract—ordinary payer
A resident company issues a standard-rate VAT invoice to another resident entity for services with a tax-exclusive value of GHS 10,000. The contract value exceeds GHS 2,000, so the 7.5% resident services rate applies.
The income-tax withholding base is GHS 10,000—not GHS 12,000: the separately stated VAT, NHIL and GETFund Levy are excluded from the income-tax deduction.
Example 1B: the same service invoice—appointed VAT withholding agent
Where the customer is also an appointed VAT withholding agent, both mechanisms apply independently to the same GHS 10,000 tax-exclusive value.
The two credits remain separate: the agent reports the GHS 750 income-tax deduction and GHS 700 VAT withholding through GRA's online tax system. Once the filings and payments are correctly posted, the corresponding electronic tax-credit records are available to the supplier. See the Ghana VAT guide.
Example 2: resident supply of goods
This example isolates the income-tax withholding only; VAT and the statutory levies are outside the illustration.
Example 3: non-resident management service
Before payment, test any applicable double tax agreement, complete the treaty-approval procedure where relief is claimed and determine whether the income is connected with a Ghanaian permanent establishment. The payer must also give the Commissioner-General notice of a non-resident goods, works or services contract within 30 days after the contract date.
MSL Business SchoolCompliance framework
What the withholding agent must do
- 01Identify the obligation before payment
Confirm the payer, recipient, residence, payment type, source, exemption, rate and treaty position.
- 02Deduct at the correct time
Withholding is triggered under the applicable payment rule; do not defer the analysis until the annual return.
- 03File online and pay within 15 days
Submit the withholding return and recipient-level schedule through GRA's Taxpayers' Portal, initiate payment and complete both within 15 days after the end of the withholding month.
- 04Confirm the electronic tax-credit record
Use the recipient's correct TIN or Ghana Card PIN and verify that the filed and paid deduction has generated the corresponding withholding tax credit in GRA's system.
- 05Retain the digital transaction record
Keep the contract, invoice, residence and exemption evidence, calculation, filing acknowledgement, payment confirmation and portal-generated credit record.
Failure to withhold: the withholding agent is liable to pay tax that should have been withheld and may recover that amount from the recipient. Interest, penalties and other consequences arise under the Revenue Administration Act.
Application distinctions
Important distinctions in applying the rates
These rules explain categories that can otherwise be confused with entries in the withholding tables.
The former 10% withholding tax on gross lottery winnings is no longer in force. Do not confuse winnings with the continuing 10% commission rate for a lotto agent.
Purchases of unprocessed gold are outside the current withholding rule. The 1.5% mineral-purchase rate covers unprocessed rough diamonds and any other mineral prescribed by Regulations.
The 25% resident inter-company dividend exemption does not override the special withholding rules for dividends from petroleum or mineral operations and is subject to the other statutory exceptions.
The final-tax treatment and treaty analysis change where income is derived through a Ghanaian permanent establishment.
Tax withheld from employment is PAYE and follows the individual income-tax bands—not the contract-service rates on this page.
Frequently asked questions
Ghana withholding tax questions
What is the withholding tax rate in Ghana?
There is no single rate. Common resident contract rates are 3% for goods, 5% for works and 7.5% for services. Other rates apply to dividends, interest, rent, royalties, specified fees, non-resident payments and special sectors.
When is withholding tax due in Ghana?
The withholding agent must file the prescribed statement and pay the tax within 15 days after the end of the calendar month in which the amount was withheld or treated as withheld.
Is withholding tax calculated on VAT?
Income-tax withholding is applied to the gross contract payment for the underlying goods, works or services. Where VAT and levies are separately stated, they are not part of that income-tax withholding base. VAT withholding is a separate 7% mechanism for appointed VAT withholding agents.
What is the withholding threshold for goods, works and services?
The resident contract-payment rule applies where the contract value exceeds GHS 2,000, with related contracts for the same goods, works or services aggregated. This is not a universal threshold for every withholding category.
Is Ghana withholding tax a final tax?
Only the categories the legislation designates as final have that treatment. These include dividends paid by a resident company, investment rent outside a business of sale or letting, specified examination and endorsement fees, and covered payments to non-residents that are not derived through a Ghanaian permanent establishment. Resident contract deductions and resident petroleum-subcontractor deductions are advance tax credits.
Does Ghana still withhold tax on lottery winnings or unprocessed gold?
No. Withholding on lottery winnings and purchases of unprocessed gold is no longer in force. Commission paid to a lotto agent remains subject to 10% withholding. The 1.5% mineral-purchase rule covers unprocessed rough diamonds and any other mineral prescribed by Regulations.
Can a tax treaty reduce Ghana withholding tax?
Yes. Ghana has bilateral income-tax agreements and an ECOWAS multilateral agreement. A qualifying recipient receives the lower of the applicable Ghana domestic rate and the treaty ceiling. The payer must confirm that the agreement is in force and establish residence, beneficial ownership, the payment's treaty classification, any subject-to-tax or ownership condition, and whether the income is connected with a Ghanaian permanent establishment.
How does a non-resident obtain a Ghana treaty withholding rate?
The non-resident completes a Certificate of Residence endorsed by the tax authority of its country of residence and submits a formal application to the Commissioner-General with the relevant contract, shareholding evidence or loan agreement. After the GRA issues its approval or ruling, the non-resident gives a copy to the Ghanaian withholding agent so the approved treaty rate is applied.
How is the withholding tax certificate obtained?
Under the current digital process, the withholding agent files and pays through GRA's online tax system using the recipient's correct TIN or Ghana Card PIN. GRA's system then generates the electronic withholding tax credit record or certificate that supports the recipient's non-final tax credit.
MSL Business SchoolLegal reference map
Primary authorities and section map
The main guide is written for practical use. The section references are collected here for readers who need to test the technical basis.
- Income Tax Act, 2015 (Act 896), as amendedSections 114–120 and paragraph 8 of the First Schedule: withholding obligations, domestic rates, the GHS 2,000 contract rule, online statement and payment deadline, tax-credit certificates, final payments and non-final credits
- Additional Income Tax Act referencesSections 59, 71, 85 and 116A: investment returns, petroleum subcontractors, exempt amounts and withholding on consideration from the realisation of assets or liabilities
- Ghana's bilateral double taxation agreements applicable to the payment periodThe relevant treaty articles govern dividends, interest, royalties, technical or management service fees, permanent establishments and entitlement to relief
- ECOWAS Supplementary Act A/SA.6/12/18Regional double-taxation rules, including source-state ceilings for dividends, interest, royalties and technical service fees between qualifying residents of Member States
- Income Tax Regulations, 2016 (L.I. 2244)Subsidiary rules and prescribed information applied with the Income Tax Act
- Revenue Administration Act, 2016 (Act 915), as amendedOnline administration, records, interest, penalties, objections and enforcement
- Value Added Tax Act, 2025 (Act 1151)Sections 55–58: the distinct 7% VAT withholding regime for appointed agents
Authority hierarchy: the applicable treaty text, read with Ghana's tax legislation, controls the treaty result. GRA's online systems and administrative guidance explain filing, electronic tax-credit records and the treaty-approval procedure; they do not create the domestic rate or treaty ceiling.
Institutional publisher
TaxLawGH is MSL Business School's Ghana tax education platform.
This guide is part of MSL Business School's public tax and fiscal policy education work. MSL publishes TaxLawGH to make Ghana's tax law accurate, understandable and useful to taxpayers, practitioners, businesses, students and policy professionals.
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