Communication

In less than six months, a series of major laws have been passed by Parliament that will reshape the business environment, from how investment is governed and VAT is charged, to how mining companies are taxed and digital transactions are treated. Whether you run a large corporation or a growing mid-sized business, at least one of these changes touches your operations directly.

1. THE GIPA ACT, 2026 — A NEW INVESTMENT FRAMEWORK

On 2^nd April 2026, Parliament passed the Ghana Investment Promotion Authority (GIPA) Bill, 2026, replacing the decade-old GIPC Act, 2013 (Act 865). The Ghana Investment Promotion Centre becomes the Ghana Investment Promotion Authority, with broader powers, a larger governing board, and a mandate explicitly linked to the African Continental Free Trade Area (AfCFTA). Key changes for businesses include:

• Removal of Minimum Capital Requirements.  Minimum capital requirements have been removed for all joint ventures and wholly-owned foreign companies, except trading companies. The minimum cash requirement for trading companies has also been reduced from US$1,000,000.00 to US$500,000.oo.

• One-Stop Shop, Formally.  GIPA is now the designated national focal point for all investment facilitation, including under the AfCFTA Protocol on Investment, thereby reducing bureaucratic back-and-forth for businesses entering or expanding in Ghana.

• Enhanced Enforcement. GIPA is now capable of imposing administrative penalties and issuing compliance notices to ensure adherence to the framework.

• Local Participation Requirements. Under the Act, at 75% of the skilled workforce of trading enterprises must be skilled Ghanaians.

• Outward Investment Supported.  For the first time, the law expressly mandates GIPA to support Ghanaian businesses expanding into foreign markets, particularly within Africa.

• Technology Transfer Agreements. The minimum duration for a TTA has been reduced from 18 to 12 months. Furthermore, banks are prohibited from remitting payments in respect of unregistered agreements.

• Grievance Mechanism Introduced.  A defined, time-bound process now exists for businesses to raise complaints against public institutions through GIPA. This is a significant first.

• Annual Renewals.  Registration renewal moves from every two years to annually. Update your compliance calendar accordingly.

• Reduction in Number of Reserved Activities.  Pool betting/lotteries and recharge card printing have been removed from the list of activities reserved solely for Ghanaians, opening those sectors to foreign participation.

• Spousal Exemption Removed.  The minimum capital exemption for foreign spouses of Ghanaian citizens has been discontinued. Arrangements relying on this provision should be reviewed immediately.

   

2. THE VAT OVERHAUL — SIMPLER, FAIRER, AND LESS COSTLY

The Value Added Tax Act, 2025 (Act 1151) took effect on 1 January 2026, and is the most comprehensive VAT reform in over a decade. At its core, the law eliminates the cascading tax effect, under which the NHIL and GETFund levies were decoupled from VAT, meaning businesses could not reclaim them as input tax credits. That cost was simply passed through the supply chain and absorbed by consumers. That structural flaw has now been corrected:

• Cascading Effect Eliminated.  NHIL and GETFund levies are re-coupled with VAT, allowing input tax credit claims and ending the hidden tax-on-tax that inflated prices across the economy.

• Effective Rate Drops to 20%.  This is a reduction from the previous rate that could reach 21.9% under the old fragmented system. Fully compliant businesses using input tax credits will see real savings.

• VAT Flat Rate Scheme Abolished.  The 3% retailer flat rate is gone. All eligible businesses operate under one unified structure which is cleaner and more consistent.

• COVID Levy Abolished.  The 1% Health Recovery Levy has been scrapped, providing further relief.

• Registration Threshold Raised.  For goods suppliers, the threshold rises from GH₵200,000 to GH₵750,000 annually, removing thousands of SMEs from mandatory VAT obligations.

   

These reforms are expected to return an estimated 3.7 billion Ghana cedis to the economy. 

3. GROWTH AND SUSTAINABIILITY LEVY (AMENDMENT) ACT, 2026 — MINING SECTOR RECALIBRATED

Also assented to on 31^st March 2026, the Growth and Sustainability Levy (Amendment) Act, 2026 reduces the GSL on gold mining companies from 3% of gross production back to 1%. The 3% rate had been introduced in 2025 as a temporary measure to compensate for the absence of a windfall revenue mechanism. That gap is now filled by the Minerals and Mining Royalty Regulations, 2025, which introduced a sliding-scale royalty system, starting at 5% when gold trades around $1,900/oz and scaling up to 12% if prices exceed $4,000/oz. With a fairer, price-linked mechanism in place, the elevated GSL was no longer needed. For businesses in the mining value chain — contractors, equipment suppliers, and professional services firms, this recalibration reduces cost pressure on mining clients and supports long-term sector stability.

THE BOTTOM LINE

These changes collectively signal a deliberate effort to modernise Ghana's business environment by reducing tax complexity, strengthening investor protections, and aligning the fiscal regime with international best practices. Businesses should move now: review VAT compliance under the new unified regime, assess registration obligations under the incoming GIPA Act, and, if you are in or serve the mining sector, understand how the sliding-scale royalty framework changes your operating landscape.