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Investment & Legal Framework
After tax holidays, agro processing enterprises and
manufacturers of cocoa by-products, attract different
corporate tax rates depending on their location, as
shown:
• Accra and Tema - 20%
• Other Regional capitals except Northern,Upper
East and Upper West - 10%
• Northern, Upper East and Upper West - 0%
• Outside Other Regional Capitals - 0%
B. Tax Exceptions
• Tax holidays: Companies operating in different sec-
tors are granted tax holidays from the start of opera-
tions in Ghana as shown in the following table:
• Location Incentives: Companies operating in the
manufacturing sector are entitled to tax rebates, de-
pending on their location. Those operating in region-
al capitals other than Accra and Tema are entitled
to a rebate of 25% whiles those in other locations
other than the regional capitals, Accra and Tema at-
tract 50% rebate.
C. Capital Allowances
Capital allowances (tax depreciation) are granted for
depreciable assets owned by a person at the end of
its basis period. There are six classes of depreciable
assets on which tax depreciation is calculated and
each class has its own depreciable rate. Class one
Enterprises that pre-finance
Farming Enterprise:
Tree Crop
Livestock, Fish and Cash Crops
Cattle
Agro-Processing Business
Cocoa By-Products
Processing of Waste
Free Zone Enterprise
First ten years of operation
First ten years of operation
First ten years from first harvest
First five years from commencement
First ten years from commencement
First five years
First five years
First seven years
1
2
3
4
5
6
Computers and data handling equipment
Motor vehicles, construction & earth-moving
equipment, heavy duty trucks, manufacturing
plant and equipment, capital expenditure
on long term crop planting
Mineral and petroleum exploration
and production rights, building and
structures used in connection with
2(i) above, plant and machinery
used in mining or petroleum operations
Intangible assets
Petroleum Capital Allowances
Building structures and works of a permanent nature
Railroads cars, locomotives and equipment;
water transportation vessels and equipment;
aircraft; office furniture fixtures and equipment
40%
Life of asset/10%
20% Straight-Line
10%
20%
80% of the cost base of assets
added to the pool during the
balance of the pool, if any
30%
Class
Qualifying Assets
Depreciation Rate
Tax Holidays
Capital Allowances