Section 8 of the Sixth Schedule of the new tax act, Income Tax Act, 2015 (Act 896), provides tax rebates to companies who employ fresh graduates.
The deduction is as follows
1% of workforce is fresh graduates – 10% of their salaries and wages is deductible
More than 1% but less than 5% of workforce is fresh graduates – 30% of their salaries and wages is deductible
Above 5% of workforce is fresh graduates – 50% of their salaries and wages is deductible
And “fresh graduate” per the Act refers to anyone who has graduated from a tertiary institution for the first time. Their age or previous experience is irrelevant.
This is a decent policy to encourage the employment of fresh graduates. GRA has to do more in terms of communicating this policy.
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3 comments
“If the percentage of fresh graduates in the workforce is between 1-5%, the tax credit would be 40% of salaries and wages and if the percentage of fresh graduates in the workforce is between above 5%, the tax credit would be 60% of salaries and wages,” Dr Bawumia (02/12/15) http://www.myghanaonline.com/1.8470959
“If the percentage of fresh graduates in the workforce is between 1-5%, the tax credit would be 40% of salaries and wages and if the percentage of fresh graduates in the workforce is between above 5%, the tax credit would be 60% of salaries and wages,” Dr Bawumia (02/12/15)
http://www.myghanaonline.com/1.8470959
I remember you discussed it too , analysing Dr Bawumia’s Economic Vision http://ceditalk.com/2015/12/02/analysing-dr-bawumias-economic-vision/.
Just curious you don’t find it reference worthy in this article.
I remember. Thanks for bringing it up