Ghana

Corporate - Other issues

Last reviewed - 05 February 2021

Local Content and Local Participation Regulations

The Minerals and Mining General Regulations 2012 (LI 2173) applicable to mining entities obligate mining contractors and subcontractors to conform to the requirements for recruitment of expatriates, train Ghanaians, and give preference to local products and services in their operations.

The Petroleum (Local Content and Local Participation) Regulations, 2013 (LI 2204) aim at providing a transparent monitoring system to meet the objectives of the government’s Local Content Policy. Further, the Regulations are expected to help facilitate job creation through the use of local expertise for goods and services, business, and financing in the petroleum industry value chain.

The Energy Commission (Local Content and Local Participation) (Electricity Supply Industry) Regulations, 2017 (LI 2354) compels businesses operating in the electricity supply industry (including renewable energy) to comply with the defined percentages of Ghanaian equity ownership, utilisation of local human and material resources, and services in their businesses.

Ring fencing for mining and petroleum entities

In determining the chargeable income for a basis period, mining companies are not able to deduct expenses incurred in one mining area against revenue from another mining area.

Similarly, companies engaged in petroleum operations are required to treat the activities of a petroleum right as an independent activity separately from other rights.

COVID-19 Initiatives

A part of measures to increase revenue mobilization and widen the tax net to rope in the informal sector, the government is exploring a number of policies and initiatives to achieve this goal. These include the following;

  • Ghana Card Unique Identification Number (GUIN) replaces Taxpayer Identification Number (TIN) effective 1 April 2021. This initiative is in line with the Government’s policy to use of a unique identifier for all transactions. Taxpayers will now be required to quote their GUIN when transacting (i.e. filing of returns, payment of taxes, registering business, etc) with the Ghana Revenue Authority and the Registrar- Generals' Department. However, it is expected that during the period between 1 April 2021 to 31 December 2021 both the GUIN and TIN will be used concurrently to ensure a smooth transition to the new transactional identifier.
  • Government has proposed the formulation a comprehensive policy to regulate the gaming industry and improve revenue mobilization from online and sport betting in the country.