Note: Tools and implements: no capital allowance, but is allowed on replacement basis. Where an item is not mentioned in (d) the rates under (a), (b) and (c) will apply.
3. Locational Incentives (Tax Rebate):
Manufacturing industries locate in regional capital other than Accra and Tema will enjoy a 25% rebate. All other manufacturing industries located outside regional capitals shall enjoy a 50% rebate.
4. Corporate Tax Rates:
The tax rate in all sectors is 35% except for income from non-traditional exports (8%) and hotels (25%.
5. Exemption from Income Tax:
An exemption will apply for the provision of accommodation for employees on farms, as well as building, timber, mining and construction sites.
6. Loss Carry-over
All sectors are allowed 5 years for loss carry-over, except for insurance business, which is unlimited.
7. Exemption from the Minimum Chargeable Income Tax:
There is an exemption form the minimum chargeable income of 5% of turnover during the first 5 years.
8. Capital Expenditure for research and development (R&D):
By a manufacturing company in Ghana that is approved by the Minister of Trade and Industry is fully deductible (section 4 (dd).
9. Withholding Tax:
Withholding tax rebates are as follows: dividends 10%; royalties, management and technology transfer fees 15%; interest 10%.
Under Act 478, enterprises benefit from the grant of an automatic maximum immigrant quota, depending on the enterprises’ paid-up capital.
Act 478 provides guarantees to all enterprises, free transferability through any authorized dealer bank in freely convertible currency of: dividends or net profits attributable to the investment; payments in respect of loan servicing where a foreign loan has been obtained; remittance of proceeds (net of all taxes and other obligations) in the event of sale or liquidation of the enterprise or any interest attributable to the investment. Guarantees against expropriation of private investments provided under Act 478 are buttressed by the constitution.