In case you are establishing a business or operating a business in Ghana in 2026, it is time for you to double check your calculations.
While the corporate tax rate in Ghana for the year 2026 is still 25%, the VAT regime has been revamped on January 1st, foreign digital services are subject to VAT at the point of payment, and the Growth and Sustainability Levy is still in place.
This guide explains what a company in Ghana actually pays corporate income tax, VAT and withholding tax among other things, and the deadlines, which avoid penalties for non-compliance with GRA.
It is written for foreign investors and Indian founders in particular, because cross-border payments are where most avoidable tax costs appear.
Ghana business taxes 2026 at a glance
Tax | 2026 rate | Key point |
Corporate income tax (CIT) | 25% (general) | Reduced or higher rates for some sectors |
Growth and Sustainability Levy (GSL) | 2.5% or 5% of profit before tax | Not deductible; applies until the 2028 year of assessment |
VAT + NHIL + GETFund | 20% combined | COVID-19 levy abolished from 1 January 2026 |
Withholding tax on dividends | 8% | Final tax for residents and non-residents |
Withholding tax on services paid abroad | 20% | Final tax; treaties may reduce it |
What is the Ghana corporate tax rate in 2026?
The general Ghana corporate income tax rate is 25% of chargeable income. Chargeable income is your accounting profit adjusted for tax rules for example, adding back non-deductible expenses and replacing depreciation with capital allowances.
Who pays corporate tax in Ghana
A company is tax resident if it is incorporated in Ghana or managed and controlled from Ghana.
Resident companies are taxed on worldwide income. A non-resident company is taxed only on Ghana-source income, including profits connected with a permanent establishment (PE) – for instance, a branch or a long-running project site.
This is the starting point for Ghana company taxation for foreigners. If your overseas company sends staff to deliver a contract in Ghana for an extended period, you may have created a PE without ever incorporating locally. If you are still deciding on structure, see our guide to company formation in Ghana.
Sector and location rates
Corporate tax in Ghana is not one flat number for everyone:
Activity | CIT rate |
General rate | 25% |
Hotels | 22% |
Banks – income from agricultural and leasing loans | 20% |
Manufacturing in a regional capital (not Accra or Tema) | 18.75% |
Manufacturing elsewhere outside Accra, Tema and regional capitals | 12.5% |
Non-traditional exports | 8% |
Mining and upstream petroleum | 35% |
Free zone enterprises and some young entrepreneurs in priority sectors can qualify for tax holidays, but there are certain conditions which have to be met, and you should verify them before incorporating them into your business plan.
Loss making firms are subject to one rule: in case a firm makes losses in the past five consecutive years, it shall be taxed according to 5% of its turnover.Businesses in their first five years and farming businesses are excluded.
The Growth and Sustainability Levy
The GSL is the cost many foreign investors miss. It is charged on top of CIT, it cannot be deducted when calculating CIT, and it applies even to companies with a tax holiday.
Category A – 5% of profit before tax: banks and other financial institutions, insurers, telecoms companies, breweries, oil marketing and bulk oil companies, shipping and terminal operators, and other listed sectors.
Category B – 1% of gross production: mining and upstream oil and gas. The rate for gold miners went back from 3% to 1% following an amendment signed on 31 March 2026.
Category C – 2.5% of profit before tax: every other company.
The levy is paid in four quarterly instalments and currently runs to the 2028 year of assessment.
Worked example: CIT and GSL
Hypothetical example. An Indian founder owns a Ghanaian IT services company in Accra. It earns a profit before tax of GHS 4,000,000, and for simplicity we assume chargeable income is the same figure.
Item | GHS |
Corporate income tax at 25% | 1,000,000 |
GSL at 2.5% (Category C) | 100,000 |
Total tax on profits | 1,100,000 |
Effective rate | 27.5% |
So the realistic planning figure for most companies is 27.5%, not 25%.
Not Sure About Your Ghana Company Tax Liability?
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Ghana VAT rate 2026 and what changed
This is the law which came into effect on 1 January 2026 replacing the old VAT law in its totality. This below is what constitutes the VAT changes in Ghana for 2026.
How the 20% is made up
The normal VAT rate remains at 15%. The National Health Insurance Levy (NHIL) and the GETFund Levy, which are both 2.5%, are currently levied on the same basis as VAT, bringing the total to 20%.
Until 2026, the levies together with the 1% COVID-19 levy were stacked in such a way that their effective burden was about 21.9%.
Two further changes help VAT-registered businesses:
- The COVID-19 Health Recovery Levy has been abolished.
- NHIL and GETFund can now be claimed as input tax, and therefore, your tax payments on your purchases are claimable in the same manner as VAT.
Example: on a sale of GHS 50,000 that is rated at standard rate, you charge VAT of GHS 7,500, NHIL of GHS 1,250 and GETFund of GHS 1,250 making GHS 10,000.
Who must register for VAT
Goods Suppliers: Registration is mandatory when taxable turnover exceeds GHS 750,000 within 12 months (from GHS 200,000).
Service providers: there is no turnover limit, which means that a consultancy firm, software company or an agency needs to register right away.
Flat Rate Scheme users: the 3% scheme has been abolished; former users now account for VAT at the standard rate.
Penalties for failing to register were also increased under the new Act. Separately, the GRA is extending its electronic VAT invoicing (E-VAT) system in phases, so check whether your business has been selected.
VAT on foreign digital services
Starting from 15 October 2026, banks and payment service providers will charge 20% VAT at the time of payment when a Ghana-issued card, mobile money or wallet pays a non-resident service provider for eligible digital services.
The GRA has stressed that this is a new collection method, not a new tax. Foreign SaaS and digital businesses selling into Ghana still need to register and file VAT returns.
Ghana withholding tax rates 2026
Withholding tax (WHT) is deducted by the payer and paid to the GRA. For residents, most WHT is a prepayment that can be credited against the recipient’s final tax bill.
For non-residents, it is usually a final tax – what is withheld is the end of the matter in Ghana.
Payments to Ghana residents
Payment Type | Residents | Non-Residents |
Goods / Works / Services | 3% / 5% / 7.5% | 20% |
Dividends | 8% (final) | 8% |
Interest | 8% | 8% |
Royalties | — | 15% |
Management & Technical Fees | — | 20% |
Commercial Rent | 15% (final) | — |
Directors’ Fees | 20% | — |
Repatriated Branch Profits | — | 8% |
The 20% withholding tax on services is the figure foreign groups most often overlook. It applies to management charges, IT support and consulting fees your Ghana company pays to an overseas parent or sister company.
Treaty relief – and why Indian parents do not get it
Double taxation agreements exist between Ghana and such countries as the UK, Germany, France, Holland, Switzerland, Singapore, Mauritius, and South Africa.
Such provisions can limit the amount of WHT for instance, a technical fee charged to a UK company could be limited to 10%.
India is not on Ghana’s treaty list. That means domestic rates apply in full to payments from a Ghanaian company to an Indian company.
Hypothetical example. Extending from the previous example, the Ghana-based company distributes their post-tax income of GHS 2,900,000 to the Indian-based company, in addition to paying a GHS 500,000 per year management fee.
- WHT on the dividend at 8%: GHS 232,000
- WHT on the management fee at 20%: GHS 100,000
The parent may be able to claim a foreign tax credit in India under unilateral relief rules, but that depends on Indian law and the parent’s own tax position.
This is where structure matters – how fees are priced, documented under transfer pricing rules, and whether a different holding route makes commercial sense.
Paying Dividends or Service Fees Across Borders?
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Ghana business tax registration and compliance calendar
Every company must register with the GRA. The company’s registration number at incorporation links to its Taxpayer Identification Number, and you then register for each tax type you will operate – typically CIT, PAYE and, where relevant, VAT.
New companies receive a provisional tax assessment, so tax is payable from the first quarter, not from the first profit.
Obligation | Deadline |
PAYE and income tax withheld | 15th of the following month |
VAT withheld (appointed agents) | 15th of the following month |
VAT/NHIL/GETFund return and payment | Last working day of the following month |
CIT and GSL instalments | 31 March, 30 June, 30 September, 31 December (calendar-year companies) |
Annual corporate tax return | Within four months of year-end (30 April for a December year-end) |
The maximum extension of time in filing the Ghana tax returns can go for up to two months provided that you get the approval from the GRA. There is a 125% interest charge at the rate set by the Bank of Ghana which is payable on any late payment.
Tax Clearance Certificates can also be stalled due to consistent noncompliance with tax obligations.
Tax Compliance in Ghana companies is done on a monthly basis and not at the end of the year.We support foreign-owned companies with Ghana tax compliance support,from GRA registration to monthly returns.
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Tax compliance for foreign companies in Ghana: five common mistakes
Budgeting at 25%. For most businesses, the profit-tax rate is 27.5% after considering the GSL.
At an Old VAT rate charge: The invoice layouts that were designed for 21.9% effectiveness and even Flat Rate Schemes will have to be revised.
VAT registration timing for services-based enterprise: In services, there is no threshold; the penalty is more under Act 1151.
Ignoring WHT on intra-group charges: A 20% final tax on fees paid abroad can wipe out the benefit of a management-fee arrangement.
Losing WHT credits: Customers who withhold from your invoices must issue certificates; without them, you cannot offset the tax against your own CIT.
Planning your Ghana tax position
Ghana’s company tax system is manageable once you see the whole stack: 25% CIT plus the GSL on profits, a cleaner 20% VAT with recoverable levies, and withholding tax on almost every payment that leaves the country.
For foreign owners, and Indian founders especially, the cross-border layer is where planning makes the biggest difference.
Vorx Consultancy helps international founders set up in Ghana, register with the GRA, open business bank accounts in Ghana and plan how profits and fees move back home.
If you would like a second look at your structure or a compliance plan for 2026–27, book a consultation with our team.
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