Ghana legal and accounting and tax considerations in 2024

1. The standard corporate tax rate in Ghana is levied at 25%. The fiscal year in Ghana runs from 1^st January to 31^st December and annual financial statements must be filed by the 30^th of March. Late payment of taxes and wrong filing attracts variable penalties depending on nature of tax;
2. Branches of foreign companies also pay corporate tax at the rate of 25% plus an additional 10% on remittances;
3. The standard VAT levied on supplies of goods and services and imports is 12.5%. The National Health Insurance Levy also imposed on all goods, services and imports is 2.5% although imports are taxed at 16.5%. Export of goods is zero-rated;
4. Capital gains taxes are subject to the standard corporate tax of 15%. Capital gains derived from the sale of buildings whether temporary or permanent structures in Ghana, land in Ghana or shares of a resident company are subject to 5% capital gains tax;
5. Stamp duty in Ghana is levied at variable rates of between US$0.55 to 1% of the value of the transaction;
6. Net operating losses may be carried forward for a period of 5 years and carryback of losses is prohibited;
7. Withholding tax is levied to residents as well as non-residents on i) dividends at the rate of 8% ii) interest at the rate of 8% iii) royalties at the rate of 10% and iv) technical services fees at the rate of 15%. Withholding tax is levied on rent at the rate of 8%;
8. Employers are required to make social security contributions at a rate of 13.5% of the employees basic monthly income;
9. Foreign exchange controls exist in Ghana under the Foreign Exchange Act, 2006 (Act 723) whereby repatriation of funds or dividends and payments in foreign currency to or from Ghana must be done through an authorized dealer bank. These authorized dealer banks must report their foreign exchange dealings to Bank of Ghana;
10. Ghana has signed double tax treaties for dividends, interest, royalties, and management and technology transfer fees with 12 countries including Belgium, France, Germany, South Africa, Sweden and the United Kingdom;
11. Healy Consultants Compliance Department will assist our Clients with i) documenting and implementing accounting procedures ii) implementing financial accounting software iii) preparation of financial accounting records and iv) preparing forecasts, budget and sensitivity analysis;
12. It is important our Clients’ are aware of their personal and corporate tax obligations in their country of residence and domicile; and they will fulfill those obligations annually. Let us know if you need Healy Consultants’ help to clarify your annual reporting obligations.