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.<\/p>\n\n\n\n
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.<\/p>\n\n\n\n
The Direct impact of these businesses includes job creation, export contribution, knowledge and technology transfer, and strengthening of value chains in respective sectors.<\/p>\n\n\n\n
Macroeconomic Context<\/strong> Ghana stands at a pivotal moment in its economic journey, seeking to attract and retain investments that drive growth, create jobs, and improve livelihoods. GRA, as a key player in shaping the country\u2019s investment landscape, has been proactive in implementing initiatives that foster a conducive business environment.<\/p>\n\n\n\n Under the leadership of Mr. 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\u2019s six Strategic Priority Areas: People and Culture, Enhanced Revenue Mobilization, Innovation & Tech Transformation, Data & Insights, Governance & Operational Excellence, Stakeholder Trust & Public Confidence.<\/p>\n\n\n\n The GRA has been instrumental in driving tax reforms that enhance Ghana\u2019s 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 carryforward provisions, replacing the legacy Pioneer Status incentive.<\/p>\n\n\n\n Unified VAT Rate: provided a unified VAT rate of 15% on all taxable supplies, removing previous variations. The rationale for the VAT reform include: Simplification of the VAT regime, improved voluntary compliance and enforcement mechanisms, Reduction of leakages and fraud, Creation of a level playing field<\/p>\n\n\n\n It is worth noting that a high VAT gap often means 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. \u25cf Removal of pandemic-related taxes (1% COVID-19 Health Recovery Levy) \u2013 this was no longer a medical emergency. Operational Actions taken by the GRA pursuant to VAT Reform Delivery include: \u2013 Enhanced Data Matching and Intelligence- We are leveraging digital tools to: Match VAT returns against third-party data, Analyze discrepancies in real time, identify abnormal refund patterns, Improve risk profiling of taxpayers. Other digitalization Reforms at GRA<\/strong> Tax Incentives for Specific Sectors: The Freezones Tax Incentive: Reforms in the pipeline: Regulatory Reforms While commending the GNBCC and its leadership, it is assuring that the GRA is committed to: Enforce fairly, provide clarity, avoid arbitrary decisions and Improve service delivery. The GRA continuously encourage all citizens to know the various taxes, honour such tax obligations and let us build the Ghana we want together.<\/p>\n\n\n\n Elsie Appau- Klu ESQ is a Lawyer and Technical Advisor to the Commissioner General of Ghana Revenue Authority. Elsie once served the good people of the Netherlands in various capacities, including roles as Business Development Advisor for West Africa, and witnessed the transition and rebranding of the GNBCC.<\/p>\n\n\n\n
\u2013 In 2025, Ghana\u2019s Tax to GDP ratio stood at about 13.6%.
\u2013 In 2026 GRA Revenue Target: GH\u00a2225 billion (about GH\u00a250 billion more than 2025\u2019s target)
\u2013 It is regrettable to note that there was a huge VAT Tax Gap where more than half of the VAT that should be collected under existing laws is not accruing into the national purse.
\u2013 It is worth noting that this VAT Gap represented both a challenge and a major opportunity- for fiscal consolidation, infrastructure expansion, and social investment.<\/p>\n\n\n\n
In summary, the VAT Reform in Structure- provided a Consolidation of the VAT and levies regime into a clearer framework (standard VAT, NHIL, GETFund).<\/p>\n\n\n\n
\u25cf Flat rate scheme- previously applied to retailers now abolished
\u25cf VAT Registration threshold- raised from GH\u00a2200, 000 to GH\u00a2750, 000 to reduce compliance burden for small businesses. Exempting small and micro businesses from VAT registration.
\u25cf Input tax deduction- businesses can now offset certain levies against VAT liabilities
\u25cf Removal of Decoupling- non-deductibility of levies removed.<\/p>\n\n\n\n
\u2013 The GRA commissioned a dedicated VAT Compliance Team-A specialist unit focused on: Risk-based audits, Data analytics, Sector-specific compliance strategies, Monitoring high-risk input VAT claims.<\/p>\n\n\n\n
\u2013 Strengthened Large Taxpayer Engagement- Large corporate taxpayers \u2013 including many Swiss firms \u2013 fall under enhanced relationship management frameworks. Our aim is cooperative compliance, not adversarial enforcement.
\u2013 Focused on VAT Refund Integrity- We recognize that legitimate VAT refunds are critical for cash flow and investment planning. At the same time, fraudulent refund claims significantly widen the VAT gap.<\/p>\n\n\n\n
\u2013 Beyond the VAT reforms, the Ghana Revenue Authority is also implementing forward-looking initiatives aimed at strengthening revenue assurance, modernizing administration, and improving trade facilitation.
\u2013 ITAS- a new Integrated Tax Administration System that enhances administration efficiency and integrates all operational data and systems.
\u2013 VAT administration efficiency: Automation of VAT and Introduction of Fiscal Electronic Device to promote digital Compliance: mandatory electronic filing and real-time VAT reporting for registered businesses, enhancing tax administration efficiency.
\u2013 Digital transactions: Sentinel system is aimed at improving 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.
\u2013 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.
\u2013 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.
\u2013 Establishment of the Modified Taxation Scheme with focus of bringing the informal sector to the tax net. This is backed by a massive taxpayer education under the GRAs flagship programme dubbed Sustained Tax Education programme.<\/p>\n\n\n\n
Incentives for manufacturing, transportation, logistics, and technology-based firms, including capital allowances and accelerated depreciation.
Establishment and operationalization of the Independent Tax Appeals Board (ITAB)
\u2013 A more structured and reliable platform is now available after the establishment of the legislative instrument to operationalize ITAB- dispute resolution system which is considered easier, cost-effective and friendly than the traditional litigation system.<\/p>\n\n\n\n
Ghana\u2019s free zones offer attractive tax incentives to encourage investment and export-oriented production. The benefits include:
\u25cf 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.
\u25cf Customs Duties and VAT: Exemptions apply on most imports and exports, and domestic sales are zero-rated for VAT.
\u25cf 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.
\u25cf Foreign Ownership: 100% foreign ownership is permitted.
\u25cf Repatriation of Funds: Unrestricted transfer of funds is allowed convertible currency subject to recent practice instructions from the Bank of Ghana.<\/p>\n\n\n\n
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\u2019 broader economic development. Notable among these reforms include:
\u2013 Review of the Income Tax Act, 2015 (Act 896).
\u2013 Customs Act 2015 (Act 891) and Excise Act 2014 (Act 878)
Implications for Businesses within the Netherlands and European Community?
\u2013 Greater Predictability: Presently the VAT rules are made much clearer and more consistently applied. Predictability reduces investment risk.
\u2013 Stronger Enforcement Across the Board: Data-driven audits and sector-wide compliance checks. Enforcement will be intelligence-led, not random
\u2013 Increased Scrutiny of Input VAT Claims: Businesses must ensure that their supply chains are compliant \u2013 because input claims depend largely on it.
\u2013 Digital Integration- Companies investing in strong ERP systems, proper invoicing controls, and compliance automation will be well positioned.
\u2013 A fairer and more pragmatic system for all<\/p>\n\n\n\n
Similarly, the GRA counts on all businesses, citizens and residents to ensure voluntary compliance, Issue proper VAT invoices, ensure accurate tax Declaration, avoid aggressive tax planning that distorts VAT neutrality and Ensure supply chain integrity.
Remember, the GRA is collaborative, but will not spare businesses that seek to undermine its statutory mandate and integrity.<\/p>\n\n\n\n
She also functions as the National Coordinator for the Sustained Tax Education Program and Chairs the Modified Taxation Scheme Implementation Committee.<\/p>\n\n\n\n