1E9Ct5D

Capital and Profit TransferInvestments registered with the Ghana Investment Promotion Center (GIPC) and the Free Zones Board (FZB) areguaranteed unconditional transfer of dividends or net profits, payments in servicing foreign loans, fees and chargesarising from technology transfer agreements, and proceeds from the sale or liquidation of the whole or part of theinvestments.Investment IncentivesThe GIPC Act and the Free Zones Act set up the GIPC and FZB, respectively, to encourage and promote economicdevelopment and regulate the activities of investors in the country. The GIPC Act applies to businesses with foreignshareholding.An enterprise may be registered with the FZB either as a free zone developer or as a free zone enterprise. A freezone developer is licensed to develop and/or manage a free zone. A free zone enterprise is a company that exports atleast 70 per cent of its products.The incentives common to GIPC- and FZB-registered companies are in the areas of profit transfer, disputesettlement, and guarantee against expropriation. Companies have the right to transfer unconditionally, in freeconvertible currency, dividends and net profits attributable to investment, payments for servicing foreign loans, andfees and charges in respect of transfer agreements.Furthermore, if a dispute arises between the investor and the government, the parties are required to employ allefforts through mutual discussions to reach an amicable settlement. Failing this, either party may submit the disputeto arbitration in accordance with the agreement of the parties, the arbitration rules of the United NationsCommission of International Trade Law, and any bilateral or multilateral agreement on investment protectionbetween the government and the investor’s home country.Investors also are guaranteed protection against expropriation. In the unlikely event that expropriation occurs, thestate must pay fair and adequate compensation. Investors have access to the High Court to determine their rights andthe compensation payable, and (where applicable) the courts may make orders for repatriation of compensation.The incentives peculiar to each type of investment are discussed in turn.Free Zones CompaniesA free zone company is exempt from direct and indirect taxes. The company is exempt from income tax on itsprofits for the first 10 years from the date of commencement of operations, after which tax at 8 per cent is charged.Shareholders of these companies are exempt from tax on dividends.Companies Registered with the Ghana Investment Promotion CenterRegistration with the GIPC entitles the investor to an automatic immigrant quota, depending on the amount ofinvestment made. An investment of more than US $10,000 but less than US $100,000 entitles the investor to animmigrant quota of one person, and an investment of between US $100,000 and US $500,000 entitles the investor to