1E9Ct5D

Petroleum IndustryA contractor or subcontractor may not transfer any share or shares in its incorporated company in Ghana to a thirdparty without the written approval of the Minister responsible for petroleum, if the effect of such transfer would givethe third party control of the company or would enable the third party to take over the interests of a shareholder whoowns 5 per cent or more of the shares in the company.Communications IndustryThe National Communications Authority (NCA) must approve the transfer of shares in a licensee company if thetransfer would result in a change of control of that company and cause that company to breach license terms relatingto its ownership structure. Failing any change in control or any breaches, mere notification to the Authority willsuffice.TaxationCorporate TaxThere are a number of direct and indirect tax obligations on corporate entities in Ghana, under various laws. Underthe Internal Revenue Act, as amended, a company is resident for tax purposes if it is incorporated in Ghana or has itsmanagement and control exercised in Ghana at any time during the year of assessment.Generally, the income of an incorporated company is subject to a corporate tax of 25 per cent on its annual profit.However, the rate of corporate tax in Ghana also is dependent on the specific industry that the corporate entity isengaged in, the location of the corporate entity, and the investment incentives prescribed under the GIPC Act andthe Free Zones Act. For example, there are tax exemptions for free zone enterprises on the payment of income taxon profits for the first 10 years from the date of commencement of the operations, with a subsequent income tax of 8per cent; exemption from the payment of withholding taxes by shareholders on dividends; and exemption frompayment of customs duties.The chargeable income of a person for an assessment year is the total of that person's assessable income for the yearfrom each business, employment, and investment, less the total amount of deductions allowed to that person for theyear. A company is allowed to deduct from its income all outgoings and expenses wholly, exclusively, andnecessarily incurred during that period, as well as any deductions prescribed by regulations. The deductions allowedinclude: Contributions made by a person to a charitable institution or fund approved by the government or donations tocharity; Interest on loans used in the production of income; Rent on land or building occupied by a person to the extent that the land or building is occupied for purposes ofproducing income; Repairs/alterations/renewal of plant, machinery, fixtures, and other infrastructure employed in the production ofincome;