Investment Incentives

Ghana Free Zones Companies

  • 100% exemption from taxes and levies on all imports into Free Zones for production as well as exports from Free Zones
  • 100% exemption from company income tax for 10 years and 15% company income tax applies to the export of goods and services outside the national customs territory after the 10 years exemption period
  • 100% ownership of shares exclusively by foreign or local investors
  • 100% exemptions from withholding tax on dividend paid by Free Zone Entities to shareholders
  • No restriction on repatriation of dividends
  • Unimpeded issuance of expatriate work and residence permits
  • Free zone investments are guaranteed against nationalization and expropriation
  • Minimum of 70% of total produced required to be exported
  • Up to 30% of total production permitted be sold to the domestic economy
  • 100% exemption from withholding taxes on payments by domestic entities to the FZE

Ghana Investment Promotion Centre (GIPC) Companies

  • Custom duties exemptions for plant, machinery, equipment and parts thereof
  • Reduced and reasonable corporate taxes
  • Location incentives of between 25% and 50% tax reduction for manufacturing companies
  • Other attractive tax concessions such as accelerated depreciation for property, plant and equipment, five-year loss carry-over and R&D expenditure deductibility
  • Transfer of funds in respect of servicing of foreign loans
  • Tax holidays ranging from 5-10 years depending on sector
  • Automatic expatriate quotas based on minimum capital requirements
  • Relief from double taxation for foreign investors and employees where applicable
  • Full repatriation of dividends and net profit attributed to investment
  • Guarantee against expropriation (also enshrined in the Constitution of Ghana)
  • Remittance of proceeds in the sale or liquidation of investment

Tax holidays/Concessions – Specifically for Agriculture

  • Income from cocoa farming is completely exempt from tax
  • Income of individuals from farming tree crops is taxable at 1% for a concessionary period of 10 years
  • Income of individuals from cattle farming is taxable at 1% for a concessionary period of 10 years
  • Income of individuals from livestock farming other than cattle and fish is taxable at 1% for a concessionary period of 5 years
  • Income of a person from agro-processing business conducted wholly in the country is taxable at 1% for 5 years concessionary period
  • Income from a cocoa by-product processing business is taxable at 1% for a concessionary period of 5 years
  • Income from waste processing business is taxable at 1% for a concessionary period of 5 years
  • Company principally engaged in hotel industry is taxable at 22%
  • Income of a company from the export of non-traditional goods is taxable at 8%
  • Income of a person who conducts business by transmitting or receiving messages via cable, radio, satellite, etc. is taxable at 15%
  • Income of a certified low cost housing company is taxable at 1% for a concessionary period of 5 years
  • Manufacturing business located in the regional capitals of the country other than Accra and Tema is taxable at 18.75%
  • Manufacturing business located elsewhere in the country is taxable at 12.5%