Tax relief is a legally approved allowance intended to reduce one’s taxable income and thereby lessening the tax burden. It is intended to cushion the effect of tax on the individual and to make it bearable for him or her to pay the tax. 

Tax reliefs are subtracted from an individual’s assessable income before applying the tax rate. Thus, it may be described as a statutory deduction from assessable income in ascertaining the chargeable income of an individual and is granted on annual basis. 

Also, the Internal Revenue Service of Ghana defines tax relief as an approved deductible allowance intended to reduce the taxable income thereby lessening the tax burden of the individual.

The following reliefs are allowed under Section 39 subsections 1 and 2 of the Internal Revenue Act, 2,000.

Marriage/Responsibility: This relief is granted to any person with a dependent spouse or any person with at least two dependent children. In this sense, only one spouse is entitled. Thus, the couple must decide which of them would claim this relief. 

The relief would only be granted on the production of a marriage certificate or a certified copy of the registration of the marriage to support the claim.

Disability: This relief is granted to any person with a dependent spouse or any person with at least two dependent children. In this sense, only one spouse is entitled. Thus, the couple must decide which of them would claim this relief. 

The relief would only be granted on the production of a marriage certificate or a certified copy of the registration of the marriage to support the claim.

Disability: This relief is limited to income from business and/or employment only and granted to a person who is certified to be disabled by the Department of Social Welfare only.

Old age: This relief f is granted to a person(s) who are sixty (60) years receiver in receipt of income from business and/or employment.

 Child education: This relief is granted to persons who have children/wards in recognized educational institutions in Ghana. Both parents cannot claim this relief in respect of the same child. The individual only claims relief in respect to only three children or wards. 

This is highly granted only on the production of a certificate issued by ahead of the educational institution concerned stating that the child or ward is a pupil in that institution.

Aged-dependents: This relief is granted up to a maximum of two aged-dependents and only one person can claim this relief in respect of the same aged relative.

Cost of training/Self-improvement: It is given to any individual taxpayer who undergoes training to update his professional, technical, or vocational skills or knowledge.Social security: This relief is granted to persons who contribute.

Marriage/responsibility GH₵30 per annum GH₵35 per annum GH₵100 per annum Disability 25% of total income per annum (excluding investment) 25% of total income per annum (excluding investment) 25% of total income per annum (excluding investment)

Old age GH₵30 per annum GH₵35 per annum GH₵100 per annum. Children education GH₵24 per child per annum GH₵30 per child per annum GH₵100 per child per annum.

Aged dependent relative GH₵20 per dependent per annum GH₵20 per dependent per annum GH₵50 per dependent per annum. Cost of training GH₵50 per annum GH₵100 per annum GH₵200 per annum.

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