The Ghana Revenue Authority (GRA) is actively boosting the country’s investment climate by modernising tax administration, leveraging digital technology, simplifying tax compliance for businesses, and strengthening partnerships with the private sector.
As part of a 2026 “Year of Compliance” agenda, these measures seek to create a more transparent, predictable, and fair tax environment for investors.
With the Ghana Investment Promotion Authority (GIPA) Bill 2025, proposed as a legislative instrument to overhaul and replace the existing GIPC Act 865 (2013), aiming to modernise Ghana’s investment landscape, the GRA, with strategies, key reforms, incentives, and technology-driven initiatives, is poised to make and position Ghana as one of Africa’s most compelling investment destinations.
Indeed, the Netherlands and Ghana share a long-standing bilateral relationship built on trust, trade, and development cooperation.
Equally, the Ghana-Netherlands Business & Culture Council (GNBCC) has become a trusted gateway for doing business between Ghana and the Netherlands.
From available data, there are over 100 Dutch-affiliated companies operating in Ghana. Dutch companies like KLM, Dutch & Co, Cargill Ghana Limited, Solidaridad West Africa, Iribov, and Philips Ghana are actively contributing to agro-processing, renewable energy, logistics, IT, and precision manufacturing.
The Direct impact of these businesses includes job creation, export contributions, knowledge and technology transfer, and the strengthening of value chains in their respective sectors.
Macroeconomic Context
- In 2025, Ghana’s tax-to-GDP ratio stood at about 13.6%.
- In 2026, GRA Revenue Target: GH¢225 billion (about GH¢50 billion more than 2025’s target)
- It is regrettable to note that there is a large VAT Tax Gap, where more than half of the VAT that should be collected under existing laws is not accruing to the national purse.
- It is worth noting that this VAT Gap represented both a challenge and a major opportunity for fiscal consolidation, infrastructure expansion, and social investment.
Ghana stands at a pivotal moment in its economic journey, seeking to attract and retain investment that drives growth, creates jobs, and improves livelihoods. GRA, as a key player in shaping the country’s investment landscape, has been proactive in implementing initiatives that foster a conducive business environment.
Under the leadership of Anthony Sarpong, the GRA is considered a human-centred Authority that places its people at the heart of reform and transformation, guided by the Authority’s six Strategic Priority Areas: People and Culture, Enhanced Revenue Mobilisation, Innovation & Tech Transformation, Data & Insights, Governance & Operational Excellence, Stakeholder Trust & Public Confidence.
The GRA has been instrumental in driving tax reforms that enhance Ghana’s attractiveness to investors. The introduction of the Economic Development Tax Incentive provided 5% annual tax credit on qualifying capital expenditure for up to five years, with carry-forward provisions, replacing the legacy Pioneer Status incentive.
Unified VAT Rate: provided a unified VAT rate of 15% on all taxable supplies, removing previous variations. The rationale for the VAT reform includes: Simplification of the VAT regime, improved voluntary compliance and enforcement mechanisms, Reduction of leakages and fraud, Creation of a level playing field
It is worth noting that a large VAT gap often leads to unfair competition. It means compliant companies are competing against businesses that under- declare, fail to issue VAT invoices, abuse input tax claims, or operate partially in the informal economy.
In summary, the VAT Reform in Structure provided a Consolidation of the VAT and levies regime into a clearer framework (standard VAT, NHIL, GETFund).
● Removal of pandemic-related taxes (1% COVID-19 Health Recovery Levy) – this was no longer a medical emergency.
● Flat rate scheme- previously applied to retailers, now abolished
● VAT Registration threshold- raised from GH¢200, 000 to GH¢750, 000 to reduce compliance burden for small businesses. Exempting small and micro businesses from VAT registration.
● Input tax deduction- businesses can now offset certain levies against VAT liabilities
● Removal of Decoupling- non-deductibility of levies removed.
Operational Actions taken by the GRA pursuant to VAT Reform Delivery include:
- The GRA commissioned a dedicated VAT Compliance Team – A specialist unit focused on: Risk-based audits, Data analytics, Sector-specific compliance strategies, and Monitoring high-risk input VAT claims.
- Enhanced Data Matching and Intelligence: We are leveraging digital tools to match VAT returns against third-party data, Analyse discrepancies in real time, identify abnormal refund patterns, and improve risk profiling of taxpayers.
- Strengthened Large Taxpayer Engagement- Large corporate taxpayers – including many Swiss firms – fall under enhanced relationship management frameworks. Our aim is cooperative compliance, not adversarial enforcement.
- Focused on VAT Refund Integrity- We recognise that legitimate VAT refunds are critical for cash flow and investment planning. At the same time, fraudulent refund claims significantly widen the VAT gap.
Other digitalisation Reforms at GRA
- Beyond the VAT reforms, the Ghana Revenue Authority is also implementing forward-looking initiatives to strengthen revenue assurance, modernise administration, and improve trade facilitation.
- ITAS- a new Integrated Tax Administration System that enhances administration efficiency and integrates all operational data and systems.
- VAT administration efficiency: Automation of VAT and Introduction of the Fiscal Electronic Device to promote digital Compliance: mandatory electronic filing and real-time VAT reporting for registered businesses, enhancing tax administration efficiency.
- Digital transactions: The Sentinel system aims to improve the collection of taxes on digital transactions. It is designed to enhance monitoring of e-commerce and platform-based transactions, aligning with emerging digital economy taxation reforms.
- Customs Administration: Publican, the introduction of Artificial Intelligence (AI) into Customs inspection, classification, and valuation processes. The system enhances risk profiling, detects anomalies, and improves the accuracy and consistency of customs assessments, thereby safeguarding revenue and expediting legitimate trade.
- Customs Administration: Advanced Cargo Information (ACI) Pilot- provides pre-arrival cargo data to Customs, enabling earlier risk assessment and intervention. This improves compliance management, reduces clearance times for low-risk consignments, and enhances revenue assurance.
- Establishment of the Modified Taxation Scheme with a focus on bringing the informal sector to the tax net. This is backed by a massive taxpayer education under the GRAs flagship programme dubbed the Sustained Tax Education programme.
Tax Incentives for Specific Sectors:
Incentives for manufacturing, transportation, logistics, and technology-based firms, including capital allowances and accelerated depreciation.
Establishment and operationalisation of the Independent Tax Appeals Board (ITAB)
- A more structured and reliable platform is now available after the establishment of the legislative instrument to operationalise the ITAB dispute resolution system, which is considered easier, cost-effective and friendlier than the traditional litigation system.
The Freezones Tax Incentive:
Ghana’s free zones offer attractive tax incentives to encourage investment and export-oriented production. The benefits include:
● Corporate Income Tax: A 100% CIT exemption available for the first 10 years, followed by a 25% tax rate on export profits after the concessionary period as per recent amendments.
● Customs Duties and VAT: Exemptions apply to most imports and exports, and domestic sales are zero-rated for VAT.
● Domestic Sales: Up to 30% of output can be sold domestically, including damaged or rejected goods, which are treated as imports and subject to duties.
● Foreign Ownership: 100% foreign ownership is permitted.
● Repatriation of Funds: Unrestricted transfer of funds is allowed in convertible currency, subject to recent practice instructions from the Bank of Ghana.
Reforms in the pipeline: Regulatory Reforms
The Ghana Revenue Authority, in close collaboration with the Ministry of Finance, is currently working on several targeted regulatory tax reforms aimed at strengthening the tax system, improving compliance, and supporting Ghana’s broader economic development. Notable among these reforms are:
– Review of the Income Tax Act, 2015 (Act 896).
– Customs Act 2015 (Act 891) and Excise Act 2014 (Act 878)
Implications for Businesses within the Netherlands and the European Community?
– Greater Predictability: Presently, the VAT rules are made much clearer and more consistently applied. Predictability reduces investment risk.
– Stronger Enforcement Across the Board: Data-driven audits and sector-wide compliance checks. Enforcement will be intelligence-led, not random
– Increased Scrutiny of Input VAT Claims: Businesses must ensure that their supply chains are compliant, because input claims depend largely on it.
– Digital Integration- Companies investing in strong ERP systems, proper invoicing controls, and compliance automation will be well-positioned.
– A fairer and more pragmatic system for all
While commending the GNBCC and its leadership, the GRA is assured that it is committed to: enforcing fairly, providing clarity, avoiding arbitrary decisions, and improving service delivery.
Similarly, the GRA counts on all businesses, citizens and residents to ensure voluntary compliance, Issue proper VAT invoices, ensure accurate tax declarations, avoid aggressive tax planning that distorts VAT neutrality and ensure supply chain integrity.
Remember, the GRA is collaborative, but it will not spare businesses that seek to undermine its statutory mandate and integrity.
The GRA continuously encourages all citizens to know the various taxes, honour their tax obligations, and let us build the Ghana we want together.
*******
Elsie Appau-Klu is a Lawyer and Technical Advisor to the Commissioner General of the Ghana Revenue Authority.
She also functions as the National Coordinator for the Sustained Tax Education Program and Chairs the Modified Taxation Scheme Implementation Committee.
Elsie once served the good people of the Netherlands in various capacities, including roles as Business Development Advisor for GNBCC West Africa, and witnessed the transition and rebranding of the GNBCC.
PS: This is a presentation at the Ghana-Netherlands Business Breakfast Meeting on investment climate and the GIPC- GIPA Act
About the Author
