Ghana

Overview

Last reviewed - 06 February 2020

Ghana is a country located in West Africa, bordered by the Ivory Coast (Côte d'Ivoire) to the west, Burkina Faso to the north, Togo to the east, and the Gulf of Guinea to the south. Formed from the merger of the British colony of the Gold Coast and the Togoland trust territory, Ghana, in 1957, became the first sub-Saharan country in colonial Africa to gain its independence. Ghana is divided into ten regions, and its capital is Accra. The official language of Ghana is English, and the currency is the Ghana cedi (GHS).

Well-endowed with natural resources, Ghana has roughly twice the per capita output of other countries in the West Africa sub-region. In terms of its political terrain, Ghana has a stable multiparty constitutional democracy founded on elections by open and free universal adult suffrage. The country has witnessed three smooth transitions of change of governments in the current democratic dispensation. The main arms of government are the Executive, Legislature, and Judiciary, each of which is independent of the other. At the local level, the District Assemblies are to be the highest political and administrative authority in each district, with deliberative, executive, and legislative powers.

Gold, cocoa, and oil productions, as well as remittances from citizens working abroad, are the major sources of foreign currency.

The 2020 budget, which was read in November 2019, is termed Consolidating the gains for growth, jobs and prosperity for all. The Budget is anchored in the President's Ghana Beyond Aid vision and the Coordinated Programme of Economic and Social Development Policies (2017-2024). It is also consistent with the United Nations Sustainable Development Goals (Agenda 2030) and the African Union Agenda 2063.

The medium-term direction of the Budget focuses on the following eight strategic pillars:

  1. Domestic Revenue Mobilisation
  2. Business Regulatory Reforms
  3. Intensified Drive for Foreign Direct Investment
  4. Digitisation
  5. Accelerated Infrastructure Development
  6. International Financial Services Centre
  7. Enhanced Financial Support to Local Enterprises
  8. Science and Technology

 Ghana’s domestic economy continues to revolve around agriculture, which accounts for more than a third of gross domestic product (GDP) and employs more than half of the work force, mainly small landholders.

PwC is one of the largest professional services firms in Ghana. PwC Ghana is located in Accra with a second office in Takoradi, the main hub for the newly discovered oil industry in Ghana. In 2013, PwC Ghana opened a branch office in Sierra Leone. The Ghana firm has over 300 employees and 13 resident partners providing audit, assurance, tax, and advisory services to our clients across the country.

The Tax Line of Service provides direct tax services to companies and individuals, including strategic tax planning services, tax advisory services, lobbying government agencies and regulatory authorities, salary planning, payroll management and international assignment services, transfer pricing services, withholding tax (WHT) management, and indirect tax products, such as value-added tax (VAT) advisory and compliance services. Services around customs and excise duties are also provided. Further, PwC Ghana is involved in several thought leadership initiatives, such as seminars on taxes in various industries and contributing to the national budget through our pre-budget and post-budget forums.

Quick rates and dates

Corporate income tax (CIT) rates
Headline CIT rate (%) 25
Corporate income tax (CIT) due dates
CIT return due date Not later than four months after the end of the financial year.
CIT final payment due date Final payment is due at the time of filing the annual CIT return.
CIT estimated payment due dates Equal quarterly instalments due on or before the last day of the third, sixth, ninth, and 12th months of the basis period.
Personal income tax (PIT) rates
Headline PIT rate (%) Residents: 30;
Non-residents: 25
Personal income tax (PIT) due dates
PIT return due date Within four months after the end of a person's basis period.
PIT final payment due date Final payment is due at the time of filing the annual PIT return.
PIT estimated payment due dates Within 15 days after the end of the month for emoluments.
Value-added tax (VAT) rates
Standard VAT rate (%) 12.5
Withholding tax (WHT) rates
WHT rates (%) (Div/Int/Roy) Resident: 8 / 8 / 15;
Non-resident: 8 / 8 / 15;
See Ghana's Corporate summary for a description of other WHTs.
Capital gains tax (CGT) rates
Corporate capital gains tax rate (%) Capital gains are included as part of income and taxed at the applicable Corporate income tax rate.
Individual capital gains tax rate (%) Capital gains are included as part of income and taxed at the individual’s marginal/graduated tax rate for residents and 25% for non-residents; or 15% (upon election and the gains are as a result of the realisation of investment assets).
Net wealth/worth tax rates
Headline net wealth/worth tax rate (%) NA
Inheritance and gift tax rates
Inheritance tax rate (%) Inheritance tax is not expressly and separately provided for under the tax laws of Ghana.
Gift tax rate (%) Gift is included in the income of the individual and taxed at 25% for a non-resident and the marginal rate for a resident; or 15% (upon election and the gift does not relate to business or employment).

NA stands for Not Applicable (i.e. the territory does not have the indicated tax or requirement)

NP stands for Not Provided (i.e. the information is not currently provided in this chart)

All information in this chart is up to date as of the 'Last reviewed' date on the corresponding territory Overview page. This chart has been prepared for general guidance on matters of interest only, and does not constitute professional advice. You should not act upon the information contained in this chart without obtaining specific professional advice. No representation or warranty (express or implied) is given as to the accuracy or completeness of the information contained in this chart, and, to the extent permitted by law, PwC does not accept or assume any liability, responsibility or duty of care for any consequences of you or anyone else acting, or refraining to act, in reliance on the information contained in this chart or for any decision based on it.