Calculate GRA Withholding Tax on dividends, interest, rent, royalties, management fees, and other payments for residents and non-residents.
| Payment Type | Resident | Non-Resident |
|---|---|---|
| Dividends | 8% | 8% |
| Interest | 8% | 8% |
| Royalties / Natural Resources | 15% | 15% |
| Management / Technical Fees | 15% | 20% |
| Rent | 8% | 15% |
| Supply of Goods | 3% | 20% |
| Supply of Services | 7.5% | 20% |
| Insurance Premium | 5% | 5% |
Ghana's Withholding Tax system is administered by the Ghana Revenue Authority (GRA) under the Income Tax Act 2015 (Act 896). It applies to various payment types and serves as an advance collection mechanism for income tax. The rates vary depending on the type of payment and whether the recipient is a Ghana resident or non-resident.
For residents, WHT acts as an advance payment creditable against annual income tax. For non-residents without a Ghanaian permanent establishment, it's typically the final tax. Key rates include 8% on dividends and interest, 15% on royalties, and 3-7.5% on supply of goods and services. Non-resident rates are generally higher, particularly for management fees (20%) and services (20%).
Ghana has DTAs with several countries including the UK, France, Germany, South Africa, and Italy. These treaties may reduce WHT rates for non-residents. To benefit from treaty rates, the non-resident must provide a tax residency certificate from their home country.
The WHT rate on dividends is 8% for both residents and non-residents. This is one of the lower dividend WHT rates in Africa. DTAs may further reduce this rate for treaty country residents.
WHT must be remitted to GRA within 15 days after the end of the month in which the payment was made. Late remittance attracts penalties and interest under the Revenue Administration Act.
For residents, WHT is generally an advance tax that is credited against the final income tax liability at year-end. For non-residents without a Ghanaian permanent establishment, WHT is typically the final tax on that income. However, dividends and interest WHT at 8% is a final tax for both residents and non-residents.
Any person or entity making a payment that is subject to WHT must deduct it at source and remit it to GRA. This includes companies, government institutions, and individuals making qualifying payments above the threshold. The withholding agent must issue a withholding tax certificate to the recipient as proof of deduction.
Yes. Ghana has Double Taxation Agreements with countries including the UK, France, Germany, South Africa, and Italy. These treaties can reduce WHT rates on dividends, interest, and royalties for non-residents. To claim the reduced treaty rate, the non-resident must provide a valid tax residency certificate from their home country to the payer before payment.
In Ghana, WHT on supply of goods is 3% for residents and 20% for non-residents. Supply of works (construction) is 5% for residents and 20% for non-residents. Supply of general services attracts 7.5% for residents and 20% for non-residents. These rates apply to payments above the applicable GRA threshold.
Late remittance of WHT to GRA attracts a penalty of the greater of 10% of the tax due or GH₵500 per month of default, plus interest at 125% of the Bank of Ghana lending rate. Persistent non-compliance may lead to prosecution under the Revenue Administration Act 2016 (Act 915).