Small business taxes in Ghana: A complete guide

Key takeaways

• Every small business in Ghana pays taxes on what it earns or sells, including income tax, VAT, and PAYE if you have employees.
• Registration is free. You only need your Ghana Card, business certificate, and basic business details.
• Filing late incurs penalties. Keeping proper records and submitting on time safeguards your business from legal issues.

Running a small business in Ghana comes with responsibilities, such as paying taxes. We’ll break down everything you need to know about the types of taxes you may face and how to make a payment.

What are small business taxes in Ghana?

Small business taxes are compulsory fees that business owners pay to the government based on income, sales, rent, or operations through the Ghana Revenue Authority.

The purpose is to support national development, regulate businesses, and ensure fairness in the economy. Paying these taxes makes your business a legal entity, and not paying could lead to penalties.

Types of taxes for small businesses in Ghana

Listed below are the types of taxes and tax rates in Ghana that small businesses often face:

1 – Income tax

This tax is charged on the profits your business makes. There are two types:

1.1 – Personal Income Tax (PIT)

If you operate as an individual (sole proprietors, self-employed and partnerships, not registered companies), your business profit is taxed as part of your personal income.

As of 2025, the PIT for Ghanaian residents ranges from 0% to 35%. The table below details the annual and monthly income, tax bands, and rates applied to residents’ chargeable yearly income.

For non-residents, the flat rate of 25% is taxed on their annual chargeable income.

Note: Chargeable income is the profit after allowable expenses (not gross revenue).

1.2 – Corporate income tax

Registered companies pay a 25% corporate tax on their net profit, unless they fall under a special tax regime. The tax rate you pay as a company can vary depending on the industry you’re in:

For a detailed list of all industries and their tax rates, visit the GRA website.

2 – Value Added Taxes and related levies

VAT is a consumption tax levied on goods and services. The standard VAT rate is 15%.

However, a 3% tax is applied to suppliers or retailers of products with an annual turnover of at least GHS 200,000 but not exceeding GHS 500,000. VAT-registered businesses charge customers VAT and pay it to GRA.

VAT comes with additional levies:

• National Health Insurance Levy (NHIL): A 2.5% levy on goods and services to fund the National Health Insurance Scheme.
• COVID-19 Health Recovery Levy: This was meant to fund the COVID-19 Health Recovery initiative; however, it was repealed as part of the 2025 tax reforms.
• Ghana Education Trust Fund Levy (GetFund): A 2.5% levy charged to support education.

3 – Withholding Tax

Withholding tax is when an individual or business owner (withholding agent) deducts a small percentage at source before making payments.

The percentage deducted is paid directly to the GRA on your behalf. You will receive a Withholding Tax Certificate that you must keep for filing your returns.

For the supply of services and goods exceeding GHS 2,000 per annum, a withholding tax of 7.5% and 3% respectively, is applied.

4 – PAYE (Pay as you earn)

PAYE is deducted from employees’ salaries at graduated rates. It follows the same tax bands as personal income tax above (0%–35% for residents and 25% for non-residents).

Employers are to pay the withheld taxes to the GRA on the 15th of the following month.

5 – Modified Taxation Scheme (informal sector)

This scheme is a simplified tax for the informal sector. This includes workers like artisans, traders, and small-scale service providers.

There are three categories under this scheme:

5.1 – Presumptive tax based on instalment

This applies to businesses earning less than GHS 20,000 annually (over three consecutive years). They are required to pay between GHS 25 and GHS 45 per quarter, depending on income range and business activities.

5.2 – Presumptive tax based on turnover

This is for businesses earning GHS 20,000 to GHS 500,000 annually. They pay a 3% tax on annual turnover.

5.3 – Modified cash basis

This applies to self-employed individuals who do not qualify for presumptive taxes, including qualified professionals such as lawyers and engineers who run their own businesses. They only pay taxes on their earnings after all allowable business expenses are deducted.

Apart from the Modified Tax Scheme, small-scale self-employed informal workers pay an Income Tax Stamp quarterly, ranging from GHS 3 to GHS 45, based on business size and volume.

Other taxes and fees to consider

Here are some additional taxes and fees you might encounter depending on your business type:

• Rent income tax: You pay 8% tax on your residential rental income and 15% on commercial rental income.
• Vehicle income tax: As a commercial driver, you must pay an annual vehicle income tax each quarter, ranging from GHS 20 to GHS 800, depending on the vehicle type and service.
• Capital gains tax: This applies to profits from selling assets other than trading stocks. Individuals pay 15% on net gains, while businesses include gains in annual returns and tax accordingly.

Small Business tax requirements

Before you file and pay your taxes, you must:

1. Register your business with the Office of the Registrar of Companies (ORC) for your business certificate.
2. Get your business TIN. For individuals, your Ghana Card PIN is your TIN. For businesses, you register with GRA after getting your business certificate.
3. Provide your business location details.
4. Keep proper records of your income statements, receipts, invoices, and bank statements.
5. Register with GRA for the taxes that apply to your business.

How to register for taxes with the GRA?

To register for taxes with the GRA, just visit the nearest Taxpayer Service Centre (TSC), and they’ll gladly assist you with the manual tax registration process.

A GRA staff member will walk you through each step and provide the necessary forms for you to fill out. When you visit, be sure to bring along:

• Certificate of incorporation or registration
• Business location details
• Ghana Card of the business owners/directors
• Recent financial statements

If you’re self-employed, you can register online. You only need your Ghana card:

1. Visit the GRA Taxpayer Portal.
2. Click on Sign Up.
3. Enter your TIN or Ghana card PIN.
4. Follow the prompts to register for the appropriate tax.

You’ll receive your Tax Clearance Certificate (TCC) requirements and filing schedule.

Note: Apply for any reliefs and exemptions listed below, as they can really help decrease your tax load.

What is the cost of registering for taxes in Ghana?

Registering for taxes in Ghana is completely free. However, businesses pay fees to register with the ORC before obtaining their TIN.

How to file and pay taxes?

Companies must file their annual income tax returns in four equal instalments (quarterly), and sole proprietorships file their annual income returns by 30 April of the following year.

GRA, however, no longer receives payment in its offices. You can make a payment at any of the GRA-designated banks or online following the steps below:

1. Visit the GRA Taxpayer Portal.
2. Log in with your Ghana Card and password.
3. Tap on Pending Returns or File Your Returns.
4. Select the tax you want to file and click on File Now.
5. Fill in the required details and submit the form.
6. After filing, go back to the homepage and tap on Pending Payment or Pay Your Taxes.
7. Choose the type of tax you wish to pay and click on Pay Now.
8. Enter the payment amount, then click Next to create your invoice.
9. Click on Pay Via Ghana.Gov to be redirected to the platform.
10. Log in to Ghana.GOV with your details.
11. Enter the Tax bill ID and select Submit.
12. An invoice will be generated; then select Pay to proceed.
13. Choose your preferred payment method (MoMo, bank, card, USSD code) and click Continue.

After completing the payment, you’ll receive a confirmation email. To download your receipt, go back to the taxpayer portal, select Pay Your Taxes, and then choose Receipts.

Tax deadlines and penalties in Ghana

The tax year runs from 1 January to 31 December. Here are some key deadlines and penalties you should keep in mind as a taxpayer:

Failing to file or pay taxes on time can lead to severe financial penalties:

Note: One penalty point equals GHS 12.00, and one currency point equals GHS 1.00.

Tax reliefs and incentives for small businesses

Ghana offers tax incentives and reliefs to ease the burden for eligible businesses and individuals. The incentives are categorised under industry-specific, location-specific, and product-specific.

They include, but are not limited to:

• Qualifying businesses in priority sectors or approved schemes such as GIPC, 1D1F, or Free Zones can import plant and machinery duty-free.
• Businesses in priority sectors like agro-processing, farming, waste processing, rural banking, and low-cost housing receive a 1% CIT rate during their tax holiday (5–10 years, depending on the sector).
• Agro-processing firms using local raw materials get lower post-holiday rates (5%–20%), depending on location: Accra/Tema, regional capitals, or rural areas.
• Free Zone enterprises and developers pay 0% CIT for 10 years, after which a rate up to 15% applies to export earnings.
• PIT payers can claim reliefs for marriage/responsibility, child education, disability, old age, dependent relatives, education, and mortgage interest.

Note: Tax holidays require approval; personal reliefs apply only to residents with approved applications, and capital expenses are deductible only if the law permits.

Common mistakes to avoid

Listed below are some common mistakes to avoid as a taxpayer in Ghana.

• Late filling: Set up reminders to track due dates to avoid late filings.
• Poor record-keeping: Keep all invoices, receipts, and financial records organised.
• Mixing personal and business finances: Open separate accounts for your finances. Mixing finances makes tax calculations difficult.

FAQs

What happens if I do not pay my taxes?

If you don’t pay your taxes, you may face penalties, interest charges, or possible legal action.

Can I register my business taxes online?

Yes, you can register your business taxes online. Visit the GRA Taxpayer Portal, sign up, and follow the prompts to register on the portal.

How often do I need to file tax returns?

It depends on the tax type. Taxes like PAYE and VAT are filed monthly. Income tax returns are filed annually.

Should freelancers or self-employed people register for income tax?

Yes. Even if you’re self-employed or freelancing, you still earn income, which makes you liable to pay personal income tax. If you earn under GHS 20,000 annually, you can use the Presumptive tax instalment scheme.

Can I pay taxes with MoMo or online?

Yes. GRA accepts payment through MoMo and bank cards on its online portal. Always keep your digital receipt as proof of payment.

Conclusion

Understanding your tax responsibilities as a business owner in Ghana helps you to avoid penalties and keep your business safe.

Register your business, figure out your tax type, keep proper records, and pay your taxes on time. Have any questions? Please share them with us in the comments below.