Farley And Partners

How is the interest Income Tax Calculated?

The interest income tax liability for any interest earned is 15% of the interest earned. No deduction are allowable and the interest income cannot be reduced by any loss.

For example, if Mr. X earns interest income of D150000 in a tax year, then his interest income tax liability will be D22500. The taxpayer paying the interest will deduct the D22500 from the D150000 and pay Mr. X D127500 and issue him a Certificate of interest Income Withholding Tax Certificate. Mr X is to attach this Certificate to his declaration to GRA covering the period.

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