+233 030 277 1318
+233 030 277 2783
info@mincom.gov.gh
Minerals House
#12 Switchback Road
Residential Area
Cantonment - Accra
GL- 060 -1131
MINING FISCAL REGIME
(FISCAL INSTRUMENTS & INCENTIVES)
| FISCAL INSTRUMENT | APPLICABLE RATE |
|---|---|
| Mineral Royalty | 5% |
| Corporate Income Tax | 35% |
| Capital Allowance | 20% straight line on mining assets for 5 years |
| Losses carried forward | 5 years |
| Thin Capitalization | 3:01 |
| VAT | 12.5% (Refundable) |
| NHIL & GET Fund Levy | 12.5% each and tax deductible |
| Pay As You Earn (PAYE tax) | Graduated rate |
| Dividend tax | 8% |
| National Fiscal Stabilization Levy (NFSL) | 5% of profit before tax |
| Government Carried Equity | 10% |
| Annual Mineral Right Fees | As prescribed by L.I 2176 |
| Withholding tax on resident entities | Goods 3%, Works 5%, Service 7.5% |
| Withholding tax on interest payable to non-residents | 8% |
| Withholding tax on royalties, natural resource payments and rents | 15% |
| Ground Rent | As prescribed by L.I. 2357 |
MINING FISCAL INCENTIVES
- Double taxation relief
- Incentive for employing fresh graduates;
| Percentage of Fresh Graduates in Workforce | Additional Deduction |
|---|---|
| Up to 1% | 10% of salaries and wages |
| Up to 1% but not more than 5% | 30% of salaries and wages |
| Above 5% | 50% of salaries and wages |
MINING FISCAL INCENTIVES
List of minerals incentives
Concessionary rate for the payment of custom duties on Plant, Machinery & Equipment exclusively for Mining Operations as approved (The Mining List)
The holder of a mining lease is entitled to the capitalisation of expenditure on reconnaissance and prospecting approved by the Minister on the advice of the Commission where the holder starts development of a commercial find.
Royalties paid is tax deductible
Retention of a portion of export proceeds in an external account to finance purchase of inputs
Immigration quota in respect of approved number of expatriate personnel in line with Minerals and Mining (Local Content & Local Participation) Regulations, 2020 (L.I. 2431)