Doing Business in Ghana

Tax Regime And Investment

Tax Rates

0

Corporate Tax

0

VAT

0

Mineral Royalties

0

Rent Tax

0

NHIL

0

Companies in Non-Traditional Export

0

Farming / Lease Companies Loan Income

0

Hotels

0

Companies on the Stock Exchange

Investment Incentives

Tax Holidays (From Start of Operation)

1 %

Real Estate (Certified Low Cost Housing)

5 Years

1 %

Rural Banks

10 Years

1 %

Cattle Ranching

10 Years

1 %

Tree Cropping (e.g Coffee, Oil Palm, Shea-Butter and Coconut)

10 Years

1 %

Livestock Excluding Cattle And Poultry

5 Years

1 %

Fish Farming, Poultry And Cash Crops

5 Years

1 %

Waste Processing (Including Plastics and Polythene)

5 Years

1 %

Real Estate (Certified Low Cost Housing)

5 Years

Locational Incentives (Tax Rebates)

1. a) Manufacturing industries located in:

0

Accra and Tema

0

All other regional capitals

0

Located outside regional capitals

1. 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:

20%

Accra-Tema

15%

Other Regional Capitals (except Northern, Upper East and Upper West Regional Capitals

10%

Outside Regional Capitals

5%

Northern, Upper East and Upper West Regions (capitals and all other locations

Exemptions

Investment Guarantees

Infrastructure

Infrastructure remains a key development priority to sustain Ghana’s rapid urbanization and industrial growth as well as attainment of the post 2015 development agenda and Sustainable Development Goals (SDGs). The national development framework therefore seeks to expand existing social and economic production infrastructure to ensure that services provided are reliable, affordable and efficient.

As a lower middle income country pursuing an accelerated development of economic and social infrastructure, Ghana recognizes the indispensable role of private sector investment and Public Private Partnerships (PPPs) in addressing the financing gap and improving the quality of infrastructure services. Private sector participation in financing, managing and operating Ghana’s infrastructure assets, has been identified as key to helping the country achieve its infrastructure goals.

Ghana’s location in the West African sub-region provides a unique advantage for the development of the country’s infrastructure as a hub for regional and international trade and commerce. In the specific context of improving the level of infrastructure in the country, the goal is to facilitate both intra-regional trade and to open up rural areas for investment, productivity enhancement and job creation, introduce/deepen competition and create an enabling environment for the private sector to spearhead the country’s development in the following areas:

Political Stability

A strong and stable democracy

Ghana is considered one of the more stable countries in West Africa since its transition to multi-party democracy in 1992, the country has made major strides towards consolidating its democratic achievements.There have been five free and fair elections in the past 20 years and two peaceful transfers of power, which is enough in itself to attract substantial investor interest

Ghana ranks 26th globally and 2nd in Africa in the 2016 World Press Freedom Index which measures the pluralism, independence of the media, quality of legislative framework and safety of journalist in each of the 180 countries in the ranking.The broadcast media in Ghana is the strongest, with radio being the most far reaching medium of communication putting Ghana in an enviable political position and formidable social capital.

Ghana’s governance has received significant progress through the strengthening of its democratic credentials. There are 24 registered political parties in Ghana according to the Electoral Commission. The landscape is dominated however by two parties. The longest traditional democracy in Africa has been practiced by Ghana. 

A strong and stable democracy

The 1992 constitution mandates a multi-party system of governance with the President as the Head of State. The tenure of the President is limited to a maximum of two terms of four years each. One of the principal attractions of Ghana as an Investment destination is its status as one of the best governed and stable states in the Sub Saharan region.

The Mo Ibrahim Index of African Governance which assesses the performance of various countries by measuring the extent to which they meet the expectations of citizens politically, socially and economically has ranked Ghana 7th in the 2016 index.On Safety and Rule of Law, Ghana placed 6th but was ranked 14th, 23rd, 11th and 5th in the sub-categories of Rule of Law, accountability personal safety and national security respectively.

The administrative region of Ghana is divided into 10 regions which are sub divided into Metropolitan and District assemblies. Of the assemblies, 70% is elected by universal suffrage with the remaining 30% based on experience or ability to excel in a particular field.

The independence of the Judiciary has helped strengthened the country’s good governance and reputation and where weaknesses in the system has been identified, the authorities have acted swiftly to remedy these weaknesses.

Unity

The country also has a strong sense of national identity and unity that supersedes other affiliations such as ethnicity and tribe, arising out of an educational system in which people from different backgrounds tend to mix.

While religious sentiment is strong, tensions between various religious groups are low. An estimated  70% of  Ghana’s population is Christian, divided between Pentecostals, Protestants, Catholics and other denominations. About 16% is Muslim and around 9% follow traditional religions.

For more please visit http://www.gipcghana.com