Academy›🧾 Pay your taxes the right way

The taxes your business meets

Income tax, the Modified Taxation Scheme for small businesses, and when to file.

⏱ 7 min Lesson 1 of 3

Every business pays tax on its profit. Companies file a yearly return; so do individuals in business.

Qualifying small individual businesses can use GRA's Modified Taxation Scheme instead of full accounts.

File your annual return within four months of the end of your year — by 30 April for a year ending 31 December.

If you have staff you also deduct PAYE (module 3). If you sell enough, you register for VAT (next lesson).

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📌What you need to know

The Modified Taxation Scheme has three options: a fixed instalment for turnover up to GH¢20,000, a 3% tax on turnover above GH¢20,000 up to GH¢500,000, or a modified cash basis (turnover less expenses).
The 3% turnover option is charged on sales, not profit — expenses are not deducted.
Professionals (lawyers, accountants, engineers...), partners, and owners of several businesses or outlets cannot use the instalment or turnover options.
In September 2026 GRA proposed extending the scheme to small companies with turnover up to GH¢750,000. This is a proposal and needs a change in the law — check before relying on it.
Keep records even on the simple scheme: they decide which option you qualify for.

In Ghana: the numbersChecked 14 October 2026

Turnover tax (MTS)3% of sales, GH¢20,000–500,000

Annual return4 months after year end

Dec year endDue 30 April

Not filing because "the business made no profit" — you still file a return.

Picking the 3% turnover option when your margins are thin: it is charged even if you made a loss.

Running several outlets and still using the instalment option.

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Tip. Work out your tax both ways once a year — 3% of sales against tax on actual profit — and use the cheaper one you qualify for.

Do it in DatanaDatana handles this part for you.

Sources · checked 14 October 2026