Click here to access the tax ruling from the Ghana Revenue Authority which applies to employees of members of the Association of Bankers and Ghana Revenue Authority.

This ruling expires in December 2023.

Summary

Normally, a clothing allowance is a taxable earning. However, for the affected employees, a portion of the clothing allowance for clothing not suitable for wearing outside of work, will be exempt as follows:

• 20% of the clothing allowance is exempt from tax, but the exemption should not exceed 5% of the employee’s basic salary.

Note that there has been no change in the tax legislation, this is a special temporary ruling affecting certain taxpayers.

 Click here to access the Knowledge base article with the guidelines on making these changes on your payroll.

Please contact your Business partner to assist you with making customized calculations for the exemption or implementing the changes.