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Withholding tax is a set amount of income tax that an employer withholds from an employee's paycheck. Employers remit withholding taxes directly to the IRS in the employee's name. The money taken is a credit against the employee's annual income tax bill.
The withholding tax comes in three sub-classifications: withholding tax on compensation, expanded withholding tax, and final withholding tax.
Sales Tax Rate in Ghana is expected to reach 13.50 percent by the end of 2021, according to Trading Economics global macro models and analysts expectations. In the long-term, the Ghana Sales Tax Rate - VAT is projected to trend around 13.50 percent in 2022, according to our econometric models.
Federal income tax withholding was calculated by: Multiplying taxable gross wages by the number of pay periods per year to compute your annual wage. Subtracting the value of allowances allowed (for 2017, this is $4,050 multiplied by withholding allowances claimed).
There are seven federal income tax rates in 2022: 10 percent, 12 percent, 22 percent, 24 percent, 32 percent, 35 percent, and 37 percent. The top marginal income tax rate of 37 percent will hit taxpayers with taxable income above $539,900 for single filers and above $647,850 for married couples filing jointly.

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The federal withholding tax has seven rates for 2021: 10%, 12%, 22%, 24%, 32%, 35%, and 37%. The federal withholding tax rate an employee owes depends on their income level and filing status. This all depends on whether you're filing as single, married jointly or married separately, or head of household.
What Income Is Subject To Tax Withholding? According to the IRS, regular pay (e.g. commissions, vacation pay, reimbursements, other expenses paid under a nonaccountable plan), pensions, bonuses, commissions, and gambling winnings are all incomes that should be included in this calculation.
In the US, withholding by employers of tax on wages is required by the federal, most state, and some local governments. Taxes withheld include federal income tax, Social Security and Medicare taxes, state income tax, and certain other levies by a few states.
VAT withholding agents are required by law to withhold 7% on the taxable value and submit that amount to the Ghana Revenue Authority.
What is Withholding Tax? This tax is referred to as Withholding Tax. It is a retention tax; the payer of certain incomes is responsible for deducting tax at source from payments made and remitting the deducted tax to KRA.

withholding tax rates in ghana 2022 pdf