Frequently Asked Questions - All FAQs

FAQs - All FAQs

Ghana's 1992 Constitution, which is the basic framework for the governance of the country, offers guarantees for protection to investors and their investments. Chapter five of the Constitution embodies the relevant protection mechanisms.

Companies are guaranteed:

  • Unconditional transferability of dividends and net profits after tax to their home countries

  • Transferability of payments for loan servicing in the case of foreign loans and royalties and other fees in respect of technology transfer transactions e.g. licenses technical assistance and management contracts

  • the remittances of proceeds in the event of sale and liquidation of investment assets in the currency in which the investment was originally made to their home countries so far as they meet their tax obligations.

Article 20 of the Constitution guarantees protection from deprivation of property. Specifically, the Constitution states that there shall be no compulsory acquisition of property which by implication includes "investment", except where such compulsory acquisition is necessary for the defense, public order, morality, health and benefit of the country. More importantly, compulsory acquisition of property must be accompanied by prompt, fair and adequate compensation.

Under the Ghana Investment Promotion Centre Act 2013 (GIPC ACT 865), investors are given concrete guarantees and assurances in respect of their investments in Ghana.

The GIPC Act offers guarantees against expropriation. Similar to the provisions in the Constitution, expropriation is allowed only in the national interest and must be accompanied by fair and adequate compensation. The aggrieved party or the investor is given the right of access to the High Court for the determination of the fair value of the investment and the amount of compensation payable.

Ghana offers commitments at the bilateral level to protect investors and their investments. Under these bilateral regimes, government gives the right to the investor to take government to arbitration in any of the selected and pre-agreed dispute settlement fora.

Further protection under the BITs include: national treatment, which is by reference to treatment similar to that accorded to nationals of the host country; most favoured nation treatment, which is by reference to the standard of treatment not less favourable than that accorded to nationals and investments of third countries in similar circumstances; and treatment which is fair and equitable which is derived from basic principles of international law and a common shared sense of justice.

In furtherance of the investment promotion mandate given under section 3 of the Ghana Investment Promotion Centre Act 2013 (Act 865), the Ghana Investment Promotion Centre is mandated to encourage and promote investments in the Ghanaian economy through the negotiation of Bilateral Investment Treaties with interested countries.

To date, Ghana has concluded over twenty one (21) BITS. Some of the agreements have been ratified while others are still awaiting ratification.

Those signed and ratified include:
The United Kingdom and Northern Ireland
The Kingdom of Denmark
The Federal Republic of Germany
The Peoples Republic of China
The Swiss Confederation
The Republic of Malaysia
The OPEC Fund

The Kingdom of the Netherlands

Those signed but awaiting ratification are

The Republic of Romania
The Republic of La Cote d' Ivoire
The Republic of Yugoslavia
The Republic of South Africa
The Republic of Mauritius
The Republic of Zambia
The United States of America (OPIC)

The Republic of Egypt
The Republic of Bulgaria
The Republic of Cuba
The Republic of France
The Republic of Guinea
The Republic of Mauritania
The Republic of Burkina Faso

Ghana has also concluded Double Taxation Agreements with;

France
The United Kingdom
Belgium
Italy
Germany
South Africa

Switzerland

Netherlands

 

 

 

 

Yes. 

Ghana uses the instrumentality of Double Taxation Agreements to rationalize the tax obligations of investors who come from global tax sourced jurisdictions with a view to saving the affected investors from the incidence of double taxation by both their home governments and the host country. Ghana is committed to entering into DTAs with interested countries with the ultimate objective of freeing investment capital and thereby securing the investment capital from being eroded by the effects of taxation.

Ghana has concluded Double Taxation Agreements with the following countries:

  • France
  • The United Kingdom'
  • Belgium
  • Italy
  • Germany
  • South Africa
  • Switzerland
  • Netherlands