Business Taxes in Ghana (2026): Tax Rates and Compliance Guide for Local and Foreign-Owned Companies

Key Summary: Businesses in Ghana register with the Ghana Revenue Authority (GRA) and pay the taxes that apply to their activities. For most companies that means corporate income tax at 25%, plus the Growth and Sustainability Levy of 2.5% of profit before tax (5% for banks, insurers, telecoms and some other sectors) until 2028; PAYE on employees’ pay at 0–35%, with new, higher tax-free bands from 1 September 2026; and VAT at 15%, plus NHIL and GETFund at 2.5% each, a combined 20% since 1 January 2026. Withholding tax, rent tax and sector levies may also apply. PAYE and withholding tax are due by the 15th of the following month, VAT by the last working day of the following month, and the annual corporate return within four months of the year end.

Key facts: Ghana business taxes 2026

Corporate income tax: 25% general rate; reduced rates for hotels, exporters, manufacturers outside Accra/Tema and others

Growth and Sustainability Levy: 2.5% of profit before tax for most companies (5% Category A; mining on gross production), 2023–2028

VAT: 15% + NHIL 2.5% + GETFund 2.5% = 20% combined; COVID-19 levy and Flat Rate Scheme abolished from 1 January 2026

VAT registration: GHS 750,000 turnover for suppliers of goods; all suppliers of services, whatever their turnover

PAYE: 0–35%; first GHS 588 a month (GHS 7,056 a year) tax-free from 1 September 2026

Monthly deadlines: PAYE and withholding tax by the 15th; VAT by the last working day of the following month

Annual return: Within four months of the financial year end (30 April for a December year end)

Changes in Ghana’s Tax System in 2026

Change	Effective Date	What it means for businesses
VAT Act, 2025 (Act 1151) and repeal of the COVID-19 Health Recovery Levy	1 January 202	NHIL and GETFund recoupled with VAT and deductible as input tax; combined rate falls from about 21.9% to 20%; 1% COVID-19 levy abolished; VAT Flat Rate Scheme abolished; goods threshold raised from GHS 200,000 to GHS 750,000; all service providers must register.
GIPA Act, 2026 (Act 1173)	15 July 2026	GIPC became GIPA; general minimum foreign capital removed for non-trading businesses; trading companies need US$500,000 cash equity; GIPA registration now renewed annually.
Income Tax (Amendment) Act, 2026 (Act 1178)	1 September 2026 (per GRA)	Tax-free band raised from GHS 5,880 to GHS 7,056 a year (GHS 490 to GHS 588 a month); Modified Taxation Scheme ceiling raised from GHS 500,000 to GHS 750,000.
Growth and Sustainability Levy	2023–2028 years of assessment	Continues to apply on top of corporate income tax until 2028.

 

These 2026 changes build on the country’s recent reforms, and businesses can also review our guide to Ghana’s 2025 tax reforms for additional context.

What Taxes Do Businesses Pay in Ghana?

The taxes a business pays depend on its legal structure, activities, employees and transactions. Not every business pays every tax below. Identify the taxes that apply to your activities and register for those tax types.

Tax obligations can also differ for organisations operating on a not-for-profit basis. For more details, see our guide to taxation of NGOs in Ghana.

Tax	Who generally pays or accounts for it
Corporate Income Tax (CIT)	Companies and other entities on their chargeable income
Growth and Sustainability Levy (GSL)	Companies, on profit before tax or, for mining, on gross production
Personal Income Tax	Individuals, including sole proprietors and partners
Pay As You Earn (PAYE)	Employers, deducted from employees’ pay
VAT, NHIL and GETFund Levy	VAT-registered businesses on taxable supplies
Withholding Tax (WHT)	Anyone making certain payments to residents and non-residents
Capital Gains Tax	Gains on the disposal of qualifying assets
Rent Tax	Landlords on rental income
Excise Duty	Manufacturers and importers of excisable goods
Communications Service Tax	Providers of qualifying communications services
Mineral Royalties	Holders of mineral rights
Vehicle Income Tax / Tax Stamp	Commercial vehicle operators and certain small informal-sector businesses

How to Register for Tax in Ghana

Every business operating in Ghana must register with the GRA, whatever its tax position. Your Ghana Card number (for individuals) or the entity ID issued at incorporation serves as your Taxpayer Identification Number (TIN).

1. Register the business at the Office of the Registrar of Companies (ORC). If you are setting up a company, you can also learn more about the process and requirements for registering a company limited by shares in Ghana.
2. Regsiter at the GRA office near your business location. Register for each tax type that applies: typically corporate income tax and PAYE from day one, and VAT if you supply services or your goods turnover will exceed GHS 750,000.
3. Submit the supporting documents: the certificate of incorporation and constitution, directors’ IDs and CVs, the relevant registration forms, your GPS address and photographs of the business premises.
4. Set up filing and payment processes for monthly, quarterly and annual obligations.
5. Keep proper accounting and tax records from the first transaction.

Provisional tax assessments

Once registered, a company receives a provisional tax assessment each year. For a new company, the GRA estimates it from the stated capital, the nature of the business and the shareholder profile. It is paid in four equal quarterly instalments, so budget for tax from your first month, not from your first profit.

Tax Essentials for New and Foreign-Owned Businesses

Register in the right order. Incorporate at the ORC first, then register with the GRA for the tax types you will actually operate. Most obligations begin at incorporation, not at first profit.

Foreign ownership: capital and GIPA registration. Companies with foreign participation register with the Ghana Investment Promotion Authority (GIPA), formerly GIPC. Under the GIPA Act, 2026 (Act 1173), in force from 15 July 2026, the general minimum foreign-capital requirements for joint ventures and wholly foreign-owned non-trading businesses have been removed. Trading enterprises must invest at least US$500,000 in cash equity and have at least 75% skilled Ghanaian employees. GIPA registration is now renewed every year. Wholly Ghanaian-owned companies have no minimum capital requirement.

Double taxation agreements. Ghana has double taxation agreements in force with 17 countries: Belgium, the Czech Republic, Denmark, France, Germany, Ireland, Italy, Malta, Mauritius, Morocco, the Netherlands, Norway, Qatar, Singapore, South Africa, Switzerland and the United Kingdom. A treaty can reduce withholding tax on dividends, interest and royalties paid abroad and prevent the same income being taxed twice. To claim relief, follow the GRA’s practice note on double taxation relief and hold the required documentation, such as a certificate of residence.

Five-year tax holiday for young entrepreneurs. Qualifying young entrepreneurs (generally aged 35 or under) in priority sectors can receive a five-year corporate tax holiday. The sectors are agro-processing, manufacturing, ICT, energy, waste processing, tourism, creative arts, horticulture and medicinal plants. Reduced rates based on location may apply after the holiday.

Corporate Income Tax in Ghana

Corporate income tax is charged on a company’s chargeable income. The general rate is 25%, but sector and location incentives can reduce it considerably. Most companies also pay the Growth and Sustainability Levy on top.

Sector / activity	CIT rate
General corporate rate	25%
Hotel industry	22%
Non-traditional exports	8%
Financial institutions: income from lending to agriculture and leasing	20%
Manufacturing in regional capitals (outside Accra and Tema)	18.75%
Manufacturing outside Accra, Tema and the regional capitals	12.5%
Mining and upstream petroleum	35%
Free zone enterprises after the 10-year holiday: export sales	Up to 15%
Free zone enterprises: domestic sales	General rate (25%)

Source: Ghana Revenue Authority (Corporate Income Tax; Business Tax Exemptions).

The Growth and Sustainability Levy

The Growth and Sustainability Levy is charged in addition to corporate income tax for the 2023 to 2028 years of assessment and is paid quarterly, by 31 March, 30 June, 30 September and 31 December.

The following are the rates of GSL for the different business categories:

Category	Base	Rate
Category A: banks, non-bank financial institutions, insurance, telecoms, breweries and other listed sectors	Profit before tax	5%
Category B: mining and upstream oil and gas	Gross production	Varies by product (confirm current rate)
Category C: all other companies	Profit before tax	2.5%

How corporate income tax is paid

Companies pay corporate income tax in quarterly instalments by 31 March, 30 June, 30 September and 31 December. These are payments on account of the year’s liability. The annual return, filed within four months of the year end, settles any balance.

Tax Case Study

A foreign-owned manufacturing company in Accra has revenue of GH¢20 million and allowable deductions of GH¢12 million, giving chargeable income of GH¢8 million. Assume no incentives or losses, and that profit before tax equals chargeable income. The company is in GSL Category C.

Item	GH¢
Chargeable income	8,000,000
Corporate income tax at 25%	2,000,000
Growth and Sustainability Levy at 2.5% of profit before tax	200,000
Total tax on profits	2,200,000
Effective rate	27.5%

From our practice: location incentives change the numbers

We have advised manufacturing clients who were planning to expand outside the Accra–Tema enclave. Many had not realised how much location-based incentives affect the bottom line. A light manufacturing plant in a regional capital pays corporate income tax at 18.75% instead of 25%, and one outside the regional capitals pays 12.5%. Building these rates into the financial model before incorporating at the ORC made a real difference to their provisional tax planning and investment decisions.

PAYE and Personal Income Tax in Ghana

Personal income tax applies to individuals who earn income from employment, business or investment. For employees, the employer deducts it every month through PAYE and pays it to the GRA.

How PAYE works

The employer calculates each employee’s chargeable income, deducts the PAYE and pays it to the GRA by the 15th day of the following month. For example, PAYE on August salaries is due by 15 September. Chargeable income is not simply gross salary: qualifying SSNIT contributions, provident fund contributions, mortgage interest and personal reliefs can reduce it, so do not calculate PAYE by applying a flat percentage to gross pay.

PAYE bands from 1 September 2026

The Income Tax (Amendment) Act, 2026 (Act 1178) raised the tax-free band so that minimum-wage earnings are not taxed. According to the GRA, the new bands apply from 1 September 2026. PAYE for January to August 2026 is calculated on the previous bands, which had a tax-free band of GHS 490 a month (GHS 5,880 a year).

Chargeable income	Monthly (GHS)	Annual (GHS)
First (0%)	588	7,056
Next (5%)	80	960
Next (10%)	100	1,200
Next (17.5%)	2,900	34,800
Next (25%)	16,000	192,000
Next (30%)	30,332	363,984
Exceeding (35%)	50,000	600,000

Source: Ghana Revenue Authority, Amendments to the Income Tax Act, 2015 (Act 896): Income Tax (Amendment) Act, 2026 (Act 1178).

Personal tax reliefs

Resident individuals can claim statutory reliefs to reduce their chargeable income, through payroll or the annual return:

Relief	Amount
Marriage / responsibility relief	GHS 1,200 a year
Old age relief (aged 60 and over)	GHS 1,500 a year
Child education relief	GHS 600 per child a year (maximum 3 children)
Aged dependent relative	GHS 1,000 a year (maximum 2 dependants aged 60+)
Professional / technical training relief	Up to GHS 2,000 a year
Disability relief	25% of the person’s income from business and employment

Non-residents, casual workers and small businesses

• Non-resident individuals are taxed at a flat 25% on their Ghana-source income.
• Casual workers are subject to a 5% final withholding tax.
• Modified Taxation Scheme: individuals with annual business turnover above GHS 20,000 and up to GHS 750,000 (raised from GHS 500,000) pay presumptive tax of 3% of turnover. Those with turnover of GHS 20,000 or less pay a fixed amount set by the GRA, for example through the Tax Stamp.

VAT in Ghana

The VAT Act, 2025 (Act 1151) and the COVID-19 Health Recovery Levy Repeal Act, 2025 took effect on 1 January 2026 and reformed Ghana’s indirect taxes. The standard VAT rate remains 15%. NHIL (2.5%) and the GETFund Levy (2.5%) are now charged on the same base as VAT and can be claimed as input tax, so the combined charge is 20%, down from about 21.9%. The 1% COVID-19 levy has been repealed and the VAT Flat Rate Scheme has been abolished.

Component	Rate	Notes
Standard VAT	15%	Charged on taxable goods and services
National Health Insurance Levy (NHIL)	2.5%	Recoupled with VAT; claimable as input tax
GETFund Levy	2.5%	Recoupled with VAT; claimable as input tax
Combined charge	20%	On the value of the taxable supply

Example: VAT on a GH¢10,000 supply

Item	GH¢
Value of supply	10,000
VAT at 15%	1,500
NHIL at 2.5%	250
GETFund Levy at 2.5%	250
Total charged to the customer	12,000

Who must register for VAT

• Suppliers of goods: when taxable turnover exceeds, or is expected to exceed, GHS 750,000 in 12 months.
• Suppliers of services: must register whatever their turnover, generally within 30 days of starting business.
• Unregistered importers: imports by unregistered persons attract upfront VAT of 20% at the port.

E-VAT invoicing

The GRA is rolling out certified electronic invoicing (E-VAT) in phases. Businesses selected for E-VAT must connect their invoicing or ERP systems to the GRA’s system and issue certified invoices for every sale. Failure to do so attracts penalties under the Revenue Administration Act, 2016 (Act 915).

VAT filing and payment

VAT returns are filed, and any VAT paid, by the last working day of the month following the return period. For example, July 2026 VAT is due by the last working day of August 2026. A registered business must file a return even when no VAT is payable (a nil return).

Case study from our practice: a supermarket moving off the Flat Rate Scheme

A retail client operated a supermarket under the VAT Flat Rate Scheme, paying 3% VAT plus the 1% COVID-19 levy. Its pricing and accounting were built around that system. When the scheme was abolished on 1 January 2026, the business moved to standard VAT at 15% plus NHIL and GETFund.

At first this looked like a heavier compliance burden. But the business could now claim input tax on its stock and other taxable purchases, including the NHIL and GETFund it paid. For a retailer with large purchases, that recovery is significant.

The lesson: a change in VAT status is not only a compliance cost. It can create input-tax recovery that was not available before, provided purchases are supported by valid VAT invoices.

Withholding Tax in Ghana

Withholding tax is deducted at source by the person making payments of goods and services exceeding GHS 2,000 and paid to the GRA. The recipient receives a withholding tax credit certificate on the GRA portal. Where the withholding is not a final tax, the recipient can claim it as a credit against its income tax.

Payment	Resident	Non-resident	Final or on account
Dividends	8%	8%	Final
Interest (not to individuals or resident financial institutions)	8%	8%	On account (resident); final (non-resident)
Royalties and natural resource payments	15%	15%	On account (resident); final (non-resident)
Supply of goods	3%	20%	On account (resident); final (non-resident)
Supply of works	5%	20%	On account (resident); final (non-resident)
Supply of services (including management and technical fees)	7.5%	20%	On account (resident); final (non-resident)
Directors’ and board members’ fees	20%	20%	On account (resident); final (non-resident)
Commission to insurance and sales agents	10%	—	On account
Rent (residential / commercial)	8% / 15%	15%	Final
Repatriated branch after-tax profits	—	8%	Final

Source: Ghana Revenue Authority (Withholding Tax); PwC Worldwide Tax Summaries (reviewed March 2026). Resident withholding on goods, works and services generally applies to payments above GHS 2,000. Double taxation agreements may reduce non-resident rates.

Withholding agents file and pay the tax withheld by the 15th day of the month after the payment.

Other Taxes Businesses May Pay

• Excise duty: charged once, at the factory gate on removal of locally manufactured excisable goods, or at the port on imports.
• Communications Service Tax: 5% on qualifying communications services. Telecoms and related businesses need to consider how it interacts with VAT.
• Rent tax: 8% on residential rent and 15% on commercial rent, as a final tax on the landlord’s rental income.
• Capital gains: gains on the disposal of business assets and shares are generally taxed as part of income, and a resident individual may elect to pay 25% on the gain.
• Tax Stamp: a quarterly fixed tax for certain small informal-sector operators such as artisans, market traders, food sellers, hairdressers, mechanics and tailors. It is due by 15 January, 15 April, 15 July and 15 October.

Not sure which taxes apply to your business? FIRMUS registers you with the GRA for the right tax types and sets up your PAYE, VAT and withholding tax compliance from day one. WhatsApp +233 57 646 1118 · info@firmusadvisory.com

Filing Deadlines and Penalties

Obligation	Deadline
PAYE	15th day of the following month
Withholding tax	15th day of the following month
VAT, NHIL and GETFund	Last working day of the following month
CIT instalments and Growth and Sustainability Levy	31 March, 30 June, 30 September, 31 December
Annual corporate income tax return	Within 4 months of the year end (30 April for a December year end)
Tax Stamp	15 January, 15 April, 15 July, 15 October

Penalties for non-compliance

• Late filing: GHS 500, plus GHS 10 for each day the failure continues.
• Late payment: interest at 125% of the Bank of Ghana policy rate, compounded monthly on the unpaid tax.

Late filing also puts your Tax Clearance Certificate at risk, and you need that certificate for government contracts, GIPA renewal and many other permits.

10 Common Tax Mistakes Businesses in Ghana Make

1. Using an old rate or band. Rates and thresholds change often; 2026 alone brought a new VAT Act and new PAYE bands.

2. Running payroll on the old PAYE bands after 1 September 2026. Update your payroll software to the new tax-free band of GHS 588 a month.

3. Forgetting the Growth and Sustainability Levy. It adds 2.5% (or 5%) of profit before tax to most companies’ tax bill until 2028.

4. Treating VAT as simply 15%. The combined charge on a standard-rated supply is 20%.

5. Still charging the COVID-19 levy. It was abolished from 1 January 2026.

6. Still using the 3% VAT Flat Rate. The scheme was abolished from 1 January 2026.

7. Applying withholding tax without checking the recipient. The rate depends on the type of payment and whether the recipient is resident.

8. Not claiming withholding tax credits. Unclaimed credits are lost cash.

9. Filing returns that don’t agree with the accounts. Mismatches between returns, bank records and ledgers are what trigger audits.

10. Treating tax as an annual exercise. Most obligations are monthly or quarterly.

How FIRMUS Advisory Helps

FIRMUS Advisory helps local and foreign-owned businesses in Ghana to:

• register with the GRA for the right tax types;
• set up PAYE, VAT and withholding tax processes, including the 2026 VAT and PAYE changes;
• file monthly, quarterly and annual returns on time;
• identify and claim tax incentives, reliefs and withholding tax credits;
• apply double taxation treaty relief for foreign shareholders; and
• prepare for and respond to GRA audits.

Frequently Asked Questions

What taxes does a company pay in Ghana?

Most companies pay corporate income tax (25%), the Growth and Sustainability Levy (2.5% of profit before tax for most companies), PAYE on employees’ pay, VAT with NHIL and GETFund if registered, and withholding tax on certain payments. Sector taxes such as excise duty or the Communications Service Tax may also apply.

What is the corporate income tax rate in Ghana in 2026?

The general rate is 25%. Reduced rates apply to hotels (22%), non-traditional exports (8%) and manufacturers outside Accra and Tema (18.75% or 12.5%), and mining and upstream petroleum pay 35%. Most companies also pay the Growth and Sustainability Levy.

What is the Growth and Sustainability Levy?

A levy charged in addition to corporate income tax for 2023 to 2028: 2.5% of profit before tax for most companies, 5% for banks, insurers, telecoms and other Category A sectors, and a percentage of gross production for mining. It is paid quarterly.

What is the VAT rate in Ghana in 2026?

15% VAT, plus NHIL (2.5%) and GETFund Levy (2.5%), a combined 20% on standard-rated supplies from 1 January 2026. The 1% COVID-19 levy was abolished, and NHIL and GETFund are now claimable as input tax.

What is the VAT registration threshold in Ghana?

GHS 750,000 of annual taxable turnover for suppliers of goods. Suppliers of services must register whatever their turnover.

Is the VAT Flat Rate Scheme still available?

No. It was abolished from 1 January 2026, and former flat-rate businesses now account for VAT at the standard rate.

When are PAYE and withholding tax due?

By the 15th day of the following month. For example, August PAYE is due by 15 September.

When is VAT due?

The VAT return and payment are due by the last working day of the month after the return period.

When is the annual corporate tax return due?

Within four months after the end of the financial year, which is 30 April for a company with a December year end.

How are non-resident individuals taxed in Ghana?

At a flat rate of 25% on their Ghana-source income.

What withholding tax applies to payments to non-residents?

Generally 20% on goods, works, services and management or technical fees, 8% on dividends and interest, and 15% on royalties and rent, all as final taxes. A double taxation agreement may reduce the rate.

What are the penalties for late filing?

GHS 500 plus GHS 10 for each day the failure continues, and interest on unpaid tax at 125% of the Bank of Ghana policy rate, compounded monthly.

Is there a tax holiday for new businesses in Ghana?

Qualifying young entrepreneurs in priority sectors can get a five-year holiday, and agro-processing, tree-crop farming and free zone enterprises have their own holidays. Conditions apply.

How long must tax records be kept?

Generally at least six years.

Disclaimer: This article is general information only and is not tax or legal advice. It reflects our understanding of Ghana’s tax laws and GRA guidance as at September 2026. Tax rates, thresholds, reliefs and deadlines are set by the Government of Ghana and the GRA and can change with each Budget or amendment. Confirm current figures with the GRA or a qualified tax practitioner before acting. FIRMUS Advisory accepts no liability for reliance on figures that have since changed.