 MISSION STATEMENT |
To attract Private Domestic and Foreign Investment to transform Ghana into a broad-based industrial and export-led economy, through aggresive investment promotion activites.
PART I - ESTABLISHMENT OF GHANA INVESTMENT PROMOTION
CENTRE AND RELATED PROVISIONS
Establishment of Centre
1. (1) There is established by this Act a body corporate to be known as the Ghana Investment Promotion Centre, referred to in this Act as the "Centre".
(2) The Centre shall have perpetual succession and a common seal and may sue and be sued in its corporate name.
The Centre shall have power for the discharge of any of its functions, to acquire and to hold movable and immovable property, to dispose of property and to enter into any contract or other transaction.
Object of Centre
The object of the Centre is to encourage and promote investment in the Ghanaian economy.
(2) The Centre shall be the agency of government to co-ordinate and monitor all investment activities to which this Act applies.
Function of the Centre
For the purpose of section 2, the Centre shall have the following functions -
(a) initiate and support measures that will enhance the investment climate in the country for both Ghanaian and non-Ghanaian companies;
(b) promote investments in and outside Ghana through effective promotional means;
(c) collect, collate, analyse and disseminate information about investment opportunities and sources of investment capital, and advise upon request on the availability, choice or suitability of partners in joint-venture projects;
(d) register and keep records of all enterprises to which this Act is applicable;
(e) identify specific projects and invite interested investors for participation in those projects;
(f) initiate, organize and participate in promotional activities such as exhibitions, conferences and seminars for the stimulation of investments;
(g) maintain liaison between investors and Ministries, Government departments and agencies, institutional lenders and other authorities concerned with investments;
(h) provide and disseminate up-to-date information on incentives available to investors;
(i) assist incoming and existing investors by providing support services including assistance to procure authorities and permits required for the establishment and operation of enterprises;
(j) evaluate the impact of the Centre on investments in the country and recommend appropriate changes where necessary;
(k) register and keep records of all technology transfer agreements relating to investments under this Act; and
(l) perform such other functions as are incidental to the attainment of the object of this Act.
The Board of the Centre
(1) The governing body of the Centre shall be a Board which shall be responsible for the discharge of the functions of the Centre.
(2) The Board shall consist of -
(a) a Chairman;
(b) a Vice-Chairman;
(c) the Chief Executive of the Centre; and
(d) five other members at least three of whom shall be persons selected from outside the public services.
(3) The members of the Board shall be appointed by the President in consultation with the Council of State.
(4) The President shall in making the appointments under this section have regard to the expertise, knowledge and experience of the persons in matters relating to investments in Ghana.
(5) The Vice-Chairman shall be elected by the members from among their number; and where the Chairman is a person appointed from the public services, the Vice-Chairman shall be elected from the members appointed from outside the public services.
(6) A member of the Board other than the Chief Executive shall hold office for a term of four years and is eligible for re-appointment.
(7) A member of the Board may at any time resign his office in writing addressed to the President or may be removed from office by the President in consultation with the Council of State for stated reasons.
(8) Members of the Board shall be paid such allowances as the Minister responsible for Finance shall determine.
Meetings of the Board
(1) The Chairman shall preside at all meetings of the Board and in his absence the Vice-Chairman shall preside and in the absence of both the Chairman and Vice-Chairman, the members present shall elect one of their number to preside.
(2) The quorum for a meeting of the Board shall be four including the Chief Executive.
(3) The Board may co-opt any person to act as adviser at a meeting of the Board, except that a person co-opted does not have the right to vote on any matter before the Board for decision.
(4) The validity of the proceedings of the Board shall not be affected by a vacancy among its members or by a defect in the appointment or qualification of a member.
(5) Except as otherwise expressly provided for under this Act, the Board shall determine the procedure for its meetings.
Committee of the Board
The Board may for the discharge of the functions of the Centre appoint committees of the Board comprising members of the Board or non-members or both and may assign to them such function as the Board may determine except that a committee composed entirely of non-members may only advise the Board.
Chief Executive of the Centre
(1)The Centre shall have a Chief Executive who shall be appointed by the President acting in accordance with the advice of the Board given in consultation with the Public Services Commission.
(2) The Chief Executive shall hold office on such terms and conditions as the President may on the advice of the Board determine.
(3) Subject to such general directions as the Board may give, the Chief Executive shall be responsible for the day-to-day administration of the Centre and the implementation of the decisions of the Board.
The Secretary and other staff of Centre
(1)The Board shall have an officer to be designated the Secretary who shall perform the functions of keeping accurate records of proceedings and decisions of the Board and such other functions as the Chief Executive may direct.
(2) The President may acting in accordance with the advice of the Board given in consultation with the Public Service Commission, appoint for the Centre the Secretary and such other officers and employees as it may require for the effective implementation of its functions.
(3) The President may in writing delegate to the Board the power of appointment vested in him under subsection (2) of this section.
(4) The Board may engage such consultants and advisers as it may require for the proper and efficient discharge of the functions of the Centre.
Department of the Centre
The Board may, on the recommendations of the Chief Executive, create such departments in the Centre as it may consider necessary for the efficient discharge of the functions of the Centre.
Responsibility for the Centre
The Centre shall be responsible to the President.
Expenses and Funds of Centre
(1)The Government shall provide to the Centre out of monies approved by Parliament such sums as may be necessary for the efficient discharge of the functions under this Act.
(2) The Centre may levy such fees and charges for its services as may be determined by the Board.
(3) All sums of money received on account of the Centre shall be paid into such bank accounts as may be determined by the Board.
(4) The Centre may with the approval of the Board invest as it considers fit any monies not required for immediate use.
Accounts and Audit of the Centre
(1) The Centre shall keep proper books of accounts and proper records in relations to the accounts and shall prepare at the end of each financial year within a period of six months after the end of the financial year, a statement of its accounts in such form as the Auditor-General may direct.
(2) The books of accounts of the Centre shall each year be audited by the Auditor-General or an auditor approved by him and a report on the audit shall be submitted to the Board.
Financial year of Centre
The financial year of the Centre shall be the same as the financial year of the Government.
Annual Report
(1) The Board shall submit to the President within two months after the receipt of the auditor's report, a report on the activities and operations of the Centre during the preceding year.
(2) The annual report of the Centre shall include -
(a) a copy of the audited accounts of the Centre together with the Auditor-General's report on it; and
(b) such other information as the President may request.
(3) The President shall through a Minister designated by him present to Parliament a report on the activities and operations of the Centre.
Relationship with other public authorities
All government departments, government agencies and other public authorities shall co-operate fully with the Centre in the performance of its functions under this Act.
Stationing of public officers at the Centre
Notwithstanding section 15 of this Act, the President may on the advice of the Board in writing request the Registrar-General, the Director of Immigration and the head of any government Department to station at the offices of the Centre such public officers as may be specified therein and the request shall be complied with.
Investment Incentives Under The Income Tax Decree (Ghana) 1975 (SMCD5)
Income Tax Incentives provided under the Income Tax Decree, 1975 (SMCD5) as amended, include:
1. Tax Holiday (from start of operations):
a. Real Estate:
Rental income from residential and commercial premises - the first 5 years after construction. Income accruing to a company engaged in the construction, sale or letting of residential premises - during the first 5 years of start-up of operations.
b. Rural Banks:
10 years
c. Agriculture & Agro - Industry:
* Cocoa farmers & producers: Income Exempted
* Cattle ranching: 10 years
* Tree crops (eg. coffee, oil palm, sheabutter,
rubber & coconut): 10 years
* Poultry, Fishing & Cash Crops: 5 years
d. Air and Sea Transport (non-resident): Income Exempted
* The President may exempt any persons or class
of persons from all or any provision of the Decree
subject to the approval of Parliament.
2. Capital Allowances:
a. Depreciation (accelerated) allowance applicable to all sectors except banking, finance, commerce, insurance, mining and petroleum.
* Qualifying Plant Expenditure: Depreciation rate
of 50% per annum for 2 years.
* Qualifying Building Expenditure: Depreciation
rate of 20% per annum for five (5) years.
NB: * Sectors which enjoy accelerated depreciation allowance do not enjoy annual allowances.
b. Depreciation (normal) allowance applicable to banking, finance, commerce, insurance, mining and petroleum and to be enjoyed only once in the year of assessment for which the asset is first used by owner of asset:
* Qualifying Plant Expenditure: 20% Depreciation
allowance of
* Qualifying Building Expenditure: Depreciation
allowance of 10%.
* Qualifying Mining Expenditure: Depreciation allowance
of 25%.
(NB *Depreciation allowance for Plantation is 10%)
c. Annual allowance applicable to banking, finance, commerce, insurance after the enjoyment of the depreciation allowance referred to in (b) above:
* Machinery: Annual allowance at the rate of 10%.
* Plant: Annual allowance at the rate of 7 1/2%
* Furniture, Fixtures and Fittings: Annual allowance
at the rate of 7 1/2%
* Buildings (excluding residential property): Annual
allowance at the rate of 5% for mining and timber
and 3% for other sectors.
* Ships, trawlers, Ferry Boats, Lighters and tug
boats, Barges, Dredges and Pontoons: Annual allowance
at the rate of 5%.
* Aeroplanes and Helicopters: Annual allowance at
the rate of 10 %% for aeroplanes and 71/2 for helicopters.
* Qualifying mining and timber expenditure: Annual
allowance at the rate of 15%.
d. Rates of Annual allowance on Plant, Machinery etc. applicable to specific items at discretionary rates are as provided below:
| Amplifiers (Cinema) | 7 1/2% | | Bicycle | 20% | | Brickmaking machines | 5% | | Motor Cars & Trailers | 15 % | | Carts | 5% | | Cash Register | 7 1/2% | | Cinema Projectors | 10% | | Electric Dynamos, Motors and General Plant | 12 1/2% | | Engine boilers and shafting (Sawmills and Printing) | 7 1/2% | | Engines - Diesel | 10% | | Engines - Internal Combustion (stationery) | 10% | | Fixtures (General) | 7 1/2% | | Lorries | 20% | | Machinery (General) | 10% | | Oil Storage Tanks - Bolted | 7 1/2% | | Oil Pipelines & Fitting | 7 1/2% | | Rivoted & Welded | 7 1/2% | | Petrol Pumps (fixed, portable or underground) | 12 1/2% | | Photo-finish (Racing) | 10% | | Printing and Binding machines | 7 1/2% | | Printing Type | 12 1/2% | | Railway Wagons | 10% | | Refrigeration Plan | 12 1/2% | | Seating (Cinema) | 7 1/2% | | Soap Manufacture: Filling Machines | 12 1/2% | | Soap Manufacture: Pressing Machines | 7 1/2% | | Soap Manufacture: Stills | 7 1/2% | | Textile Design Rollers | 10% | | Turnstiles (Cinema) | 10% | | Typewriting and Calculating Machine | 15% | | Diesel Locomotives | 12 1/2% | | Motor Van | 20% |
e. Notes:
f. (A) Tools and Implements: No Capital Allowance, but are allowed on replacement basis.
(B) Where an item is not mentioned in (d) the rates
under (a), (b) and (c) will apply. |
3. Location Incentives (Tax Rebate)
o Manufacturing industries located in regional capitals other than Accra and Tema - 25% rebate.
o All other manufacturing industries located outside regional capitals - 50% rebate.
4. Corporate Tax Rates
35% in all Sectors except:
o Income from non-traditional exports - 8%
o Hotels - 25%
5. Exemption from income tax payable
On the provision of accommodation for employees on farms and building, timber, mining and construction sites.
6. Loss - Carry - Over
o All sectors - 5 years
o Except insurance business - unlimited.
7. Exempt from the Minimum Chargeable Income Tax
o Exemption from minimum chargeable income of 5% turnover during the first five years.
8. A Capital Expenditure for Research and Development
by manufacturing company in Ghana is (approved by the Minister of Trade and Industry) fully deductible.
9. Withholding Tax
. The withholding tax rate on dividends is 10%.
a. The withholding tax on royalties, management and technology transfer fees is 15%.
b. The withholding tax rate on interest has been reduced from 30% to 10%
TARIFF EXEMPTIONS - Items listed in this section are allowed in duty free or under concessionary duty rates. These Customs Import Duty Exemptions are administered by Customs Excise and Preventive Service (CEPS).
Tools and Implements
| Heading No. | H.S. Code | Tariff Description | | 82.02 | | Hand Saws; blades for saws of all kinds (including slitting, slotting or toothless saw blades). | | | 8202.20 R00 | - Band saw blades | | | | - Circular saw blades (including slitting or slotting saw blades). | | | 8202.31 H00 | - With working, part of steel | | | 8202.32 X00 | - With working part of materials | | | | - Other saw blades | | | 8202.91 K00 | - Straight saw blades, for working metal | | | 8202.99 H00 | - Other | | 82.07 | | Interchangeable tools for hand tools, whether or not power-operated, or for machine-tools (for example, for pressing, stamping, punching, tapping, threading, drilling, boring, broaching, milling, turning or screw driving), including dies for drawing or extruding metal, and rock drilling or earth boring tools. | | | | - Rock drilling or earth boring tools | | | 8207.11 X00 | - With working part of sintered metal carbide or cermets | | | 8207.12 K00 | - With working part of other material | | | 8207.20 K00 | - Dies for drawing or extruding metal | | | 8207.30 B00 | - Tools for pressing, stamping or punching | | | 8207.20 N00 | - Tools for tapping or threading | | | 8207.50 F00 | - Tools for drilling, other than for rock drilling | | | 8207.60 B00 | - Tools for boring or broaching | | | 8207.70 K00 | - Tools for milling | | | 8207.80 B00 | - Tools for turning | | | 8207.90 N00 | - Other interchangeable tools | | 82.08 | | Knives and cutting blades, for machines or for mechanical appliances | | | 8208.10 X00 | - For metal working | | | 8208.20 B00 | - For wood working | | | 8208.30 W00 | - For kitchen appliances or for machines used by the food industry | | | 8208.40 R00 | - For agricultural, horticultu al or forestry machines | | | 8208.90 R00 | - Other | | 82.09 | 8209.00 H00 | Plates, sticks, tips and the like for tools, unmounted, of sintered metal carbides or cermets |
| Nuclear reactors, boilers, machinery and mechanical appliances; parts thereof | | Heading No. | H.S. Code | Tariff Description | | 84.01 | Nuclear reactors; fuel elements (cartridges), non- irradiated, for nuclear reactors, machinery and apparatus for isotopic separation . | | | 8401.10 N00 | - Nuclear reactors | | | 8401.20 F00 | - Machinery and apparatus for isotopic separation, and parts thereof. | | | 8401.30 H00 | - Fuel elements (cartridges), nonirradiated | | | 8401.40 K00 | - Parts of nuclear reactors | | 84.02 | Steam or other vapour generating boilers (other than central heating hot water boilers capable also of producing low pressure steam); super- heated water boilers. | | | | - Steam or other vapour generating boilers | | | 8402.11 F00 | - Watertube boilers with a steam production exceeding 45t per hour | | | 8402.12 L00 | - Watertube boilers with a steam production not exceeding 45t per hour | | | 8402.19 N00 | - Other vapour generating boilers, including hybrid boilers | | | 8402.20 L00 | - Super-heated water boilers | | | 8402.90 B00 | - Parts | | 84.03 | Central heating boilers other than those of heading No. 84.82. | | | 8403.10 F00 | - Boilers | | | 8403.90 B00 | - Parts | | 84.04 | Auxiliary plant for use with boilers of heading No. 84.02 or 84.03 (for example, economisers, super-heaters, soot removers, gas recoverers); condensers for steam or other vapour power units. | | | 8404.10 L00 | - Auxiliary plant for use with boilers of heading No. 84.82 or 84.03 | | | 8404.20 X00 | - Condensers for steam orother vapour power units | | | 8404.90 W00 | - Parts | | 84.05 | Producer gas or water gas generators, with or without their purifiers; acetylene gas generators and similar water process gas generators, with or without their purifiers. | | | 8405.10 H00 | - Producer gas or water gas generators, with or without their purifiers, acetylene gas generators and similar water process gas generators, with or without their purifiers | | | 8405.90 N00 | - Parts | | 84.06 | Steam turbines and other vapour turbines. | | | | - Turbines: | | | 8406.11 K00 | - For marine propulsion | | | 8406.19 H00 | - Other | | | 8406.90 R00 | - Parts | | 84.07 | Spark-ignition reciprocating or rotary internal combustion piston engines. | | | 8407.10 X00 | - Aircraft engines | | | | - Marine propulsion engines: | | | 8407.21 W00 | - Outboard motors | | | 8407.29 B00 | - Others | | | | - Reciprocating piston engines of a kind used for the propulsion of vehicles of Chapter 87: | | | |
Electrical machinery and equipment and parts thereof, sound recorders and reproducers, television image and sound recorders and reproducers, and parts and accessories of such articles
| Heading No. | H.S. Code | Tariff Description | | 85.01 | | Electric motors and generators (excluding generating sets) | | | 8501.10 R00 | Motors of an output not exceeding 37.5 W | | | 8501.20 L00 | Universal AC/DC motors of an output exceeding 37.5 W | | | | Other DC motors; DC generators: | | | 8501.31 KOO | Of an output not exceeding 750 W | | | 8501.32 B00 | Of an output exceeding 750 W but not exceeding 75 KW | | | 8501.33 B00 | Of an output exceeding 75 KW but not exceeding 375 KW | | | 8501.34 W00 | Of an output exceeding 375 KW | | | 8501.40 W00 | Other AC motors single-phase | | | | Other AC motors, multi-phase | | | 8501.51 N00 | Of an output not exceeding 750 W | | | 8501.52 R00 | Of an output exceeding 750 W but not exceeding 75 KW | | | 8501.53 F00 | Of an output exceeding 75 KW | | | | AC generators (alternators): | | | 8501.61 F00 | Of an output not exceeding 75 KVA | | | 8501.62 L00 | Of an output exceeding 75 KVA but not exceeding 375 KVA | | | 8501.63 H00 | Of an output exceeding 375 KVA but not exceeding 750 KVA | | | 8501.64 X00 | Of an output exceeding 750 KVA | | 85.02 | | Electric generating sets and rotary converters. | | | | Generating sets with compression ignition, internal combustion piston engines (diesel or semi-diesel engines): | | | 8502.11 L00 | Of an output not exceeding 75 KVA | | | 8502.12 H00 | Of an output exceeding 75 KVA but not exceeding 375 KVA | | | 8502.13 K00 | Of an output exceeding 375 KVA | | | 8502.20 H00 | Generating sets with spark-ignition, internal combustion piston engines | | | 8502.30 K00 | Other generating sets | | | 8502.40 B00 | Electric rotary converters | | 85.03 | 8503.00 R00 | Parts suitable for use solely or principal with the machines of heading No.85.01 or 85.02. | | 85.04 | | Electrical transformers, static converters (for example, rectifiers) and inductors. | | | | Liquid dielectric transformers: | | | 8504.21 B00 | Having a power handling capacity not exceeding 650 KVA | | | 8504.22 B00 | Having a power handling capacity exceeding 650 KVA but not exceeding 10,000 KVA | | | 8504.23 W00 | Having a power handling capacity exceeding 10,000 KVA | | | | Other transformers | | | 8504.31 W00 | Having a power handling capacity not exceeding 1 KVA | | | 8504.32 N00 | Having a power handling capacity exceeding 1 KVA but not exceeding 16 KVA | | | 8504.33 R00 | Having a power handling capacity exceeding 16 KVA but not exceeding 500 KVA | | | 8504.34 N00 | Having a power handling capacity exceeding 500 KVA | | | 8504.40 B00 | Static converters | | | 8504.50 F00 | Other inductors | | | 8504.90 N00 | Parts |
GOODS ADMISSIBLE AT CONCESSIONARY DUTY RATES
WHEN IMPORTED BY ENTERPRISES UNDER THE
GHANA INVESTMENT PROMOTION CENTRE ACT, 1994
| Heading No. | H.S. Code | Enterprise | Tariff Description | Rate of Duty | | 98.07 | 9807 | Hotels | The following materials in the appropriate quantities:
i) Refrigerators/Deep freezers
ii) Television Sets
iii) Airconditioners
iv) public Address System
v) Furnishing including carpets, bedding and fixtures
vi) Fans
vii) Radio Sets
viii) Crockery | 0 | | 98.08 | 9808 | Restaurants, including fast food, chairs with a seating capacity of thirty or more. | The following materials, in the appropriate quantities:
i) Airconditioners
ii) Crockery
iii) Referigerators/Deep
freezers
iv) Furnishing including carpets | 0 | | 98.09 | 9809 | Local film production and electronic media duly approved by the appropriate authority | The following equipments in the appropriate quantities:
i) Transmission apparatus for radio
telephones, radio telegraphs, radio or television broadcasting whether or not incorporating reception apparatus.
ii) Sound recording apparatus
iii) Reproducing apparatus
iv) Televisioin cameras and accessories. | 0 |
Note: The expression "in the appropriate quantities" shall relate to size, number of rooms, seating capacity etc.
AMENDMENTS
All items listed in Chapters 82, 84, 85 and 98b of the Customs Harmonised Commodity and Tariff Code were zero-rated under Customs and Excise (Duties and other Taxes) Act 1996, Act 512.
However, Act 545 – the Customs and Excise (Duties and other Taxes) Amendment Act 1998 – amended the principal enactment by the substitution of the following rates of duties and taxes as they relate to the GIPC Act, 1994 (Act 478).
| Heading No. | Tariff Description | Import Duty
(%) | Sales Tax
(%) | | 82.08 | Knives and Cutting Blades | 5 | 0 | | 84.71 | Automatic Data Processing Machines and units thereof | 0 | 15 | | 85.01 | Electric Motors And Generators (Excluding Generating Sets) | 5 | 0 | | 85.02 | Electric Generating Sets and Rotary Converters (less than 375 kVA) | 5 | 0 | 98.07 and
98.08 | Air-conditioners; Furnishing including Carpets, Bedding and Fixtures; Fans and Radio Sets; Refrigerators/Deep Freezers; Television Sets; Public Address Systems; and, Crockery | 10 | 0 |
For all enquiries contact: THE CHIEF EXECUTIVE
CONTACT ADDRESS
THE CHIEF EXECUTIVE
Ghana Investment Promotion Centre,
P.O.Box M193, Accra,
Ghana.
Tel: (233)-(21)-66 5125 - 9.
Fax: (233)-(21)-66 3801.
E-mail: gipc@ghana.com
Telex: 2229 INVEST GH.
Cables: "INVESTMENT ACCRA" |
