Ghana: Tax measures in budget for 2017

Ghana: Tax measures in budget for 2017

Ghana's budget for 2017 includes a proposal to strengthen the transfer pricing unit of the Ghana Revenue Authority for purposes of "rigorous audits" of entities in the extractive sector. Multinational companies, thus, will need to have their transfer pricing documentation in place, in order to support the pricing of their related-party transactions.

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Other provisions in the budget include the following:

  • There are no changes proposed to the rate of the corporate income tax. 
  • The government intends to provide tax credits and other incentives for employing "young graduates."
  • The financial services sector is to be exempt from capital duty for two years, so as to allow for the re-capitalisation of the sector (capital duty is levied on any capital injection into a business, whether initial or additional, at a rate of 0.5%).
  • There would be an exemption from tax on gains realised from transactions of securities traded on the Ghana Stock Exchange and on certain publicly held securities.
  • The value added tax (VAT) on national health insurance, on certain imported medicines, on real estate sales, and on certain imported goods would be repealed.
  • The special petroleum tax would be reduced to 15% (down from 17.5%). Other indirect tax rates are also scheduled to be reduced.

 

Read a March 2017 report [PDF 1 MB] prepared by the KPMG member firm in Ghana

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