To demonstrate the continued commitment of the government to actively encourage investment into Ghana, find below the extensive and generous incentives, packaged in the Free Zone Act (1995) for investors interested in developing and operating free zone enclaves and single-factory free zones in Ghana include:

Investment Incentives

100% exemption from payment of direct and indirect duties and levies on all imports for production and exports from free zones.

100% exemption from payment of income tax on profits for 10 years and shall not exceed 8 per cent thereafter.

Total exemption from payment of withholding taxes from dividends arising out of free zone investments;

Relief from double taxation for foreign investors and employees;

No import licensing requirements

Minimal customs formalities

100% ownership of shares by any investor – foreign or national in a free zone enterprise is allowed. There are no conditions or restrictions on: repatriation of dividends or net profit; payments for foreign loan servicing; payments of fees and charges for technology transfer agreements; and remittance of proceeds from sale of any interest in a free zone investment;

Free Zone investors are permitted to operate foreign currency accounts with banks in Ghana;

At least 70% of annual production of goods and services of Free Zone Enterprises must be exported; consequently up to 30% of annual production of goods and services of a free zone enterprise are authorized for sale in the local market. Free Zone investments are guaranteed against nationalization and expropriation.

Locational Incentives (Tax Rebates)

1. Manufacturing industries located in:

Accra and Tema 25%

All other regional capitals 18.75%

Located outside regional capitals 12.50%

After the initial 5-year tax holiday period, Agro-processing enterprises which use local agricultural raw materials as their main inputs shall have corporate tax rates fixed according to their location as follows:

• Accra – Tema 20%

• Other Regional Capitals (except Northern,
Upper East and Upper West Regional Capitals) 10%

• Outside Regional Capitals 0%

• Northern, Upper East and
Upper West Regions (capitals and all other locations)0%

Exemptions

Industrial plant, machinery or equipment and parts thereof are exempted from customs import duty under the HS Codes chapter 82, 84, 85 and 98. An enterprise whose plant, machinery or equipment and parts are not zero rated under the Customs, Excise and Preventive Service Management Act, 1993 may submit an application for exemption from import duties and related charges on the plant, machinery or equipment or parts of the plant, machinery or equipment to the Centre.

Investment Guarantees

Constitutional guarantee

Investment laws which guarantee 100% transfer profits, dividends, etc.

MIGA membership

Bilateral Investment Promotion Treaties (BITs)

Double Taxation Agreements (DTAs)

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