10 African countries with the highest personal income tax

As corporate bodies and individuals bite hard to pay tax amidst concerns over double taxation across Africa, some nations still charge its citizens heavily in personal income tax.

Paying tax in Africa

Personal income tax is a deduction on a worker's income backed by law and remitted to the tax authority of the state where the individual resides or work.

It is usually deducted from gross salary, business or investments. For salary, it is tax after deducting pension or insurance contribution and others depending on the country's policy and legal terms.

What does this mean?

The tax band of each country is important for expatriate or someone travelling to take up a paid job in another country, most especially African nations. This helps an individual to make an informed decision and know whether the pay worth it.

Business Insider Sub-Saharan Africa by Pulse looks at 10 African countries with the highest annual personal income tax rates:

  • Chad - 60%

An individual with residence in Chad is subject to personal income tax (PIT). The taxable income is made up of work incomes and capital incomes.

  • South Africa - 45%

South African residents are taxed on their income and same rates of tax are applicable to both residents and non-residents.  

  • Morocco - 38%

In Morocco, it is charged on individuals with residence in the country.  

  • Zambia - 37.50%

The same rate applies to both Zambian and non-Zambian residents.  

  • Ethiopia - 35%

The East nation country taxed both resident and non-resident on income from the home country.

  • Congo - 30%

Congo taxes its residents on their worldwide income and taxes non-residents on their Congolese income.

Gambia - 30%

Like Congo, Gambia also tax income on resident and non-residents on their local income.

  • Kenya - 30%

Resident employees are taxed on earned income while Non-resident employees are taxable only on their income earned from within Kenya or derived from Kenya.

  • Rwanda - 30%

Rwanda charge same rate of tax to both residents and non-residents. Taxable income comprises the following: employment income, business profits, and investment income.

  • Ghana - 25%

Ghana taxes resident individuals on income from any employment, business, or investment, whether or not the source from which the income is derived has ceased.

Nigeria, Egypt, Angola, Seychelles and Libya are among the African countries with the lowest tax rates at 24%, 22%, 17%, 15% and 10% respectively.

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