15% Tax Exemption For Free Zones Companies

The Ghana Free Zones Board (GFZB) has increased the tax exemption for free zones companies from 8 per cent to 15 per cent after a period of ten years.

This means that free zones companies are exempted from paying tax for a period of ten years, after which the law requires them of paying tax.

The Head of Investor Support Services, Hajia Hanatu Abubakar disclosed this to the media on the sideline of a South Africa Trade and Investment Seminar said the Ministry of Finance increased the tax exemption as part of home grown policy.

The seminar was held under the theme “Incentives Available to Investors Looking to Invest”.

Hajia Abubakar encouraged foreign and local investors to expand and concentrate their business in Ghana because the country has a good working environment within the West Africa sub-region that help businesses to grow.

She says Ghana observe the rule of law, keeps ethical standards and is strategically located within West Africa sub-region with access to over 350 million people.

In order to push successfully on many fronts to boost the nation’s fledging economy and create more jobs, Hajia Abubakar said the board has positioned itself to provide the needed infrastructure and efficient services for investors in the free zones.

The Head of Investor Support Services stated that government seeks to transform the economy into a net exporter of goods rather than an importer.

She said free zone is seeking for strategic partners to develop the Shama export processing zone (western region), the Sekondi export processing zone and the Ashanti technology park.

Hajia Abubakar told investors present that companies registered with free zones enjoys services such as No restriction on issuance of work and residence permits to free zone investors and employees, duty free access of manufactured exports to USA and European Union markets, excellent sea and air connections with Europe and USA, a comparatively well-developed infrastructure thus good road network, water supplies, electricity, internal and external communications as well as sea and airport facilities.

The investment agency was established in 1995 by an Act of Parliament and has over the years achieved positive results in many sectors of the economy, from manufacturing, mining, textiles, agro food processing among others.