Taxes & Incentives

 

Tax Regime and Investment


 

Tax Regime (Ghana Revenue Authority)

Corporate Tax

Type of Company

Percentage (%)

Hotels

22

Financial Institutions - Income from loan to farming enterprises

20

Financial Institutions - Income from loan for a leasing company

20

All Companies

25

Companies engaged in non-traditional exports

8

Companies listed on the Stock Exchange

22

 

Investment Incentives

Tax Holidays (From Start of Operation)

Sector

No. of years

Percentage (%)

Real Estate

5 years

 

Rural Banks

After 10 years tax holiday

8

Cattle ranching

10 years

 

Tree cropping (e.g. coffee, oil palm, shea-butter and coconut)

10 years

 

Livestock excluding cattle and poultry

5 years

 

Fish farming, poultry and cash crops

5 years

 

Agro-Processing – converting fish, livestock into edible canned products

5 years

 

Waste processing (including plastics and polythene

7 years

 

Free Zones Enterprise/Development (after 10 years of operation)

 

8%

 

Locational Incentives (Tax Rebates)

a) Manufacturing industries located in:

  • Accra and Tema 25%
  • All other regional capitals 18.75%
  • Located outside regional capitals 12.50%

b) After the initial 5-year tax holiday period, Agro-processing enterprises which use local agricultural raw materials as their main inputs shall have corporate tax rates fixed according to their location as follows:

  • Accra – Tema 20%
  • Other Regional Capitals (except Northern,

Upper East and Upper West Regional Capitals) 10%

  • Outside Regional Capitals 0%
  • Northern, Upper East and

Upper West Regions (capitals and all other locations)0%

 

Exemptions

Industrial plant, machinery or equipment and parts thereof are exempted from customs import duty under the HS Codes chapter 82, 84, 85 and 98. An enterprise whose plant, machinery or equipment and parts are not zero rated under the Customs, Excise and Preventive Service Management Act, 1993 may submit an application for exemption from import duties and related charges on the plant, machinery or equipment or parts of the plant, machinery or equipment to the Centre.

 

Investment Guarantees

  • Constitutional guarantee
  • Investment laws which guarantee 100% transfer profits, dividends, etc.
  • Multilateral Investment Guarantee Agency (MIGA) membership
  • Bilateral Investment Promotion Treaties (BITs)
  • Double Taxation Agreements (DTAs)

 

For more information please visit Ghana Investment Promotion Centre (GIPC)