- 3 Marks
Question
Bisa works with Kaydei Ltd and earns an annual basic salary of GH¢140,000. He was paid a bonus of GH¢45,000 in 2021.
Required:
Determine the tax liability on the bonus.
(3 marks)
Answer
Bisa
Bonus as a percentage of basic salary
Bonus is more than 15% of annual basic salary therefore part of the bonus will be
taxed at 5% and the excess will be taxed at graduated rate.
Tax on Bonus: GH¢ GH¢
15% x GH¢140,000 = 21,000 x 5% = 1,050.00
Total Bonus 45,000
Added to other income 24,000
- Topic: Income Tax Liabilities, Tax Administration
- Series: APR 2022
- Uploader: Cheoli