Tax rebate for hiring fresh graduates

graduates-unemployment

Section 8 of the Sixth Schedule of the new tax act, Income Tax Act, 2015 (Act 896), provides tax rebates to companies who employ fresh graduates.

The deduction is as follows

1% of workforce is fresh graduates – 10% of their salaries and wages is deductible

More than 1% but less than 5% of workforce is fresh graduates – 30% of their salaries and wages is deductible

Above 5% of workforce is fresh graduates – 50% of their salaries and wages is deductible

And “fresh graduate” per the Act refers to anyone who has graduated from a tertiary institution for the first time. Their age or previous experience is irrelevant.

This is a decent policy to encourage the employment of fresh graduates. GRA has to do more in terms of communicating this policy.

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Jerome Kuseh

Accountant | Economist-in-Training | Financial Analyst
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