Paper 2CITG Professional Level100 marks

Income Taxation

Develop practical skills in computing income taxes for individuals, partnerships, companies, and capital gains under Ghana's Internal Revenue Act.

About This Paper

What is Income Taxation?

Income Taxation is the most practically focused paper at the Professional Level, requiring candidates to compute income tax liabilities across a wide range of entity types. The paper follows Ghana's Internal Revenue Act and covers the PAYE system, business income, partnership taxation, corporate tax, capital gains, and gift tax. Candidates must master the statutory computation frameworks and apply them accurately to realistic scenarios — this paper directly feeds into the advanced taxation papers at the Final Levels.

Syllabus Content

What You'll Study

01

Imposition of income tax

Residency rules, source of income, chargeable vs. assessable income, exempt income, and basic tax principles under Ghana's tax laws.

02

Employment income & PAYE

Definition of employment income, perquisites, PAYE computation, primary and secondary employment, tax reliefs and relief cards.

03

Individual taxation

Computation of individual tax liability, personal reliefs, retirement contributions, and life insurance premiums.

04

Partnership taxation

Partnership obligations, profit sharing, individual partner tax computation, capital allowances for partnerships.

05

Corporate income tax

Chargeable income computation, allowable and disallowed deductions, capital allowances, leases, and industry concessions.

06

Capital gains tax

Chargeable assets, cost base, computation of capital gains, exemptions, and CGT payment procedures.

07

Gift tax

Definition and valuation of taxable gifts, computation of gift tax liability, and exemptions.

08

Special entities

Insurance companies, banks, manufacturing companies — specific rules applicable to each sector.

All Key Topic Areas

Imposition of income tax in GhanaEmployment income & PAYETaxation of partnershipsCorporate tax computationCapital gains taxGift taxCapital allowancesIndustry concessions
Professional Development

Skills You'll Develop

01
Tax computation
02
Legislative application
03
Statutory interpretation
04
Numerical accuracy
05
Tax return preparation
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Exam Strategy

How to Pass Income Taxation

Lay out computations in the exact statutory format — examiners are strict about structure. Practise standard income tax, corporate tax, and PAYE computations until you can produce them from memory under timed conditions.

Career Outcomes

Where This Paper Takes You

Tax Associate

Income Tax Officer (GRA)

Corporate Tax Adviser

Payroll Tax Manager

Tax Compliance Analyst

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