Sage 300 People

Release Notes
Ghana Statutory Update
May 2023
Table of Contents

1.0 Ghana Tax Table Effective Date ........................................................................................3

1.1 Detail of Changes ........................................................................................................................................... 3
1.2 Apply Ghana Tax Tables to be Effective May 2023 .................................................................................... 4
1.2.1 Scenario 1 ........................................................................................................................................................ 4
1.2.2 Scenario 2 ....................................................................................................................................................... 4
1.2.3 Scenario 3 ....................................................................................................................................................... 4
1.3 Companies with Final Tax Recalculation Set Up ...................................................................................... 4
1.4 Backdate PAYE for Previous Months (from May 2023) ................................................................................ 5

2.0 Other Statutory Changes not Applied ............................................................................. 10

2.1 Vehicle Benefit Changes ............................................................................................................................. 10

3.0 Apply Ghana Statutory Changes ...................................................................................... 11

1.0 Ghana Tax Table
Effective Date
1.1 Detail of Changes
The Ghana Revenue Authority (GRA) has announced that the implementation date for the new and
revised tax tables, which were introduced in the 2023 Budget, will be 1 May 2023 and not April
2023.

Annual Tax Table effective 01 May 2023 applicable to Residents.

Annual Income Brackets Rate

From (GHS) To (GHS) %
0.00 4 824.00 0%
4 824.01 6 144.00 5%
6 144.01 7 704.00 10%
7 704.01 43 704.00 17.5%
43 704.01 240 444.00 25%
240 444.01 600 000.00 30%
600 000.01 and above 35%

Monthly Tax Table effective 01 May 2023 applicable to Residents.

Monthly Income Brackets Rate

From (GHS) To (GHS) %
0.00 402.00 0%
402.01 512.00 5%
512.01 642.00 10%
642.01 3 642.00 17.5%
3 642.01 20 037.00 25%
20 037.01 50 000.00 30%
50 000.01 and above 35%

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 Note:
The chargeable income of a Non-resident remains unchanged at 25%. This is applicable on Full-time,
Part-time and Temporary Non-resident employees.

1.2 Apply Ghana Tax Tables to be Effective May 2023

1.2.1 Scenario 1
You have not imported the April 2023 GHA-Generic tax file and your Ghana tax country company’s
live period is in May 2023. Import the latest GHA-Generic tax file, refer to section 1.3 for
companies with a final tax recalculation set up.

1.2.2 Scenario 2
You have imported the April 2023 GHA-Generic tax file in the April 2023 period and applied the
latest tax tables to finalise your April payroll. Rollover was performed and your Ghana tax country
company’s live period is in May 2023. Import the latest GHA-Generic tax file.

You will however be required to backdate PAYE for April 2023 as the tax tables should only be
applied from May 2023, refer to section 1.4 to create backdated transactions for April 2023 on a
Basic Income Earning Definition.

1.2.3 Scenario 3
Your April 2023 payroll was finalised when the April 2023 GHA-Generic tax file was released.
Rollover was performed and your Ghana tax country company’s live period is in May 2023. You
imported the April 2023 GHA-Generic tax file in the May 2023 period and backdated PAYE for the
April 2023 as per section 1.4 below.

Import the latest GHA-Generic tax file in May 2023. On the Ghana Company Rule Detail screen,
click on the Backdate button to apply the backdated adjustments for April 2023, refer to step 6
under section 1.4. Do a general recalculation on Company Rule. This will remove any backdated
adjustment values on the PAYE (Normal Tax) Deduction Definition as the latest tax tables will no
longer be applied to the April 2023 period.

1.3 Companies with Final Tax Recalculation Set Up

If your company is setup to do a final tax recalculation on tax year end or termination, you will
have to create new tax records for all employees where the existing record must end on 30 April
2023, and the new record must start on 1 May 2023.

This can be done with a User Defined Batch to bulk terminate and reinstate employees.

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 Note:
You do not have to terminate and reinstate your employees if your company is not setup to do a final tax
recalculation.

How do I know if my Ghana company is configured to do a final tax recalculation?

If the Generic Tax Set on your Normal Tax deduction definition is linked to “GHA_NML_FIN_AVE –
Ghana – Nml Tax Rem Force Ave”, your Ghana company is configured to do a final tax
recalculation on termination or tax year end.

On the Navigation Pane:

Expand Company Management

Expand Payroll Definitions
Double-click on Deductions
Select Normal Tax Definition

1.4 Backdate PAYE for Previous Months (from May 2023)

If your May 2023 payroll has already been finalised, then the new generic tax file must only be
imported in a new month, e.g. June 2023. The PAYE for May 2023 will only recalculate once a 0.00
backdated adjustment is done on the Basic Income earning line.

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Follow the steps below to apply the latest Tax Tables for previous months:

Step 1:
On the employee’s Payslip Detail screen – Earnings tab, select the Basic Income earning line.

Step 2:
Click on the Backdated Adjustment button.

Step 3:
Select New and create a transaction for the previous month, e.g., if your payroll is already in June
2023, select the May 2023 history period and enter a value of 0.00.
If you only imported the new tax file in July, then you will have to do a backdated transaction for
May 2023 and one for June 2023.

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Step 4:
Click on Close and then on Save.

Step 5:
Repeat this for all employees.

Step 6:
On the applicable Ghana Company Rules, users should then apply the backdated adjustments.
On the Company Rule Detail screen, click on the Backdate button.

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Step 7:
Select Yes when prompted to calculate all backdated transactions.

Step 8:
Once the backdated adjustments are complete, the PAYE (Normal Tax) will be adjusted with the
value for the previous month(s).

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You can also view the detailed breakdown of the backdated adjustment value by selecting the
Normal Tax Deduction line and then click on the backdated adjustment button.

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2.0 Other Statutory
Changes not Applied

2.1 Vehicle Benefit Changes

Vehicle Benefit changes are also effective from 1 May 2023 and not April 2023 as previously
communicated.

• Where only a motor vehicle is granted, the value of the benefit will be 5% of the employee’s
total cash emoluments up to a maximum of GHS 625.00 per month.
• Where only fuel is granted, the value of the benefit will be only 5% of the employee’s total
cash emoluments up to a maximum of GHS 625.00 per month.
• Where a motor vehicle is granted with fuel, the value of the benefit will be 10% of the
employee’s total cash emoluments up to a maximum of GHS 1 250.00 per month.
• Where a motor vehicle, driver and fuel are granted, the value of the benefit will be 12.5% of
the employee’s total cash emoluments up to a maximum of GHS 1 500.00 per month.

Note:
The system will not automatically apply these changes, users will have to manually calculate the vehicle
benefit value and capture on applicable Fringe Benefit payroll definition on the payslip.

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3.0 Apply Ghana
Statutory Changes
To update your Sage 300 People application with the latest Tax Tables effective from May 2023,
import the latest Ghana generic tax file.

Note:
Before importing the new GHA-GenericTax.xml file please ensure that the Sage 300 People
application is updated to at least version 22.4.3.0.

The file must be imported in any pay period before doing any payroll processing, printing
payslips or reports or making any payments. Do a general recalculation for all Ghana company
rules after importing the updated generic tax file.

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