Tax Deductions

1. Depreciation Allowance:

- Deductions are available for capital expenditure on qualifying assets, such as machinery, buildings, and equipment.

- Rates depend on the asset class, e.g., industrial buildings can claim up to 10% annually.

2. Research and Development (R&D):

- Expenditure on R&D directly related to a company’s business operations is deductible, provided the research is conducted in Ghana.

3. Bad Debts:

- Businesses can deduct bad debts if they are proven irrecoverable and have been previously included in income.

4. Employee Costs:

- Salaries, wages, and contributions to pension schemes (such as SSNIT) are deductible.

5. Interest Expenses:

- Interest paid on loans used for business purposes is deductible, provided the loans meet certain conditions under Ghanaian tax laws.

Tax Incentives

1. Registration with SSNIT:

- Employers must register with the Social Security and National Insurance Trust (SSNIT) and contribute 13.5% of employees’ gross salaries (5.5% from employees and 8% from employers).

2. Monthly Submission of Contributions:

- Contributions must be paid to SSNIT by the 14th of the following month.

Corporate Governance and Reporting

1. Industry-Specific Incentives:

- Agriculture: Businesses in agriculture enjoy a 10-year tax holiday, followed by reduced rates of 0%–15% depending on the activity.

- Manufacturing in Regional Areas: Companies outside Accra and Tema benefit from tax rates as low as 0%–20%, depending on the region.

2. Free Zone Enterprises:

- Businesses operating in Ghana’s free zones are exempt from corporate tax for the first 10 years, then pay a reduced rate of 15%.

3. Start-up Incentives

- Newly established businesses in certain sectors like ICT and agro-processing enjoy tax holidays of up to 5 years.

Other Mandatory Compliance Obligations

1. Data Protection Registration:

- Businesses handling personal data must register with Ghana’s Data Protection Commission and comply with data protection regulations.

2. Sector-Specific Licensing:

- Businesses in regulated industries (e.g., banking, insurance, and mining) must obtain and renew relevant licences from regulatory authorities.

3. Environmental Permits:

- Companies in industries impacting the environment must secure permits from the Environmental Protection Agency (EPA).

4. Export Incentives

- Income from non-traditional exports is taxed at a reduced rate of 8%, encouraging businesses to explore export markets.

5. Specialised Incentives

- Real Estate Developers: Tax incentives of 0%–15% depending on the housing category.

- Mining and Petroleum: Special provisions allow for capital allowance claims and exemptions on imported equipment.

Key Benefits of These Provisions

1. Reduce taxable income through eligible deductions, improving cash flow.

2. Encourage investment in priority sectors like agriculture, manufacturing, and technology.

3. Foster regional development with reduced rates for companies outside major urban centres.

4. Support business growth by easing the financial burden during start-up phases.