Ghana: Tax provisions in 2021 budget

Ghana: Tax provisions in 2021 budget

The budget for 2021, presented in March 2021, is focused on activities targeting economic recovery as a response to the coronavirus (COVID-19) pandemic.


Among the revenue provisions in the 2021 budget are the following tax items:

  • A financial sector clean-up levy to be imposed on banks, at a rate of 5% of profit before tax
  • A COVID-19 health levy composed of a one percentage point increase in the national health insurance levy (increased to 3.5% from 2.5%) and a one percentage point increase in the flat rate of value added tax (VAT) (increased to 4% from 3%)
  • A sanitation and pollution levy and an energy sector recovery levy
  • A proposed measure for automatic annual adjustment of road tolls

Tax relief and exemptions proposed in the budget include:

  • A permanent tax-exemption of capital gains on listed securities
  • COVID-19-related relief for certain taxpayers including a waiver of penalty and interest on accumulated tax arrears up to December 2020; a 30% rebate on the income tax due for companies in hotel and restaurant, education, arts and entertainment, and travel and tourism for the second, third, and fourth quarters of 2021; and suspension of the quarterly income tax instalment payments for the second, third, and fourth quarters of 2021 for certain small businesses

Other tax-related items in the 2021 budget provide for:

  • The appointment of the executive secretary and members of the independent Tax Appeals Board by the first half of 2021
  • Voluntary disclosures
  • Guidelines for the taxation of e-services
  • A heightened focus of tax audits on entities in the “downstream” petroleum sector
  • Replacing the Ghana card unique identification number (GUIN) with a tax identification number (TIN)

Read a March 2021 report [PDF 1.56 MB] prepared by the KPMG member firm in Ghana

© 2022 KPMG LLP, a Delaware limited liability partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved.

For more detail about the structure of the KPMG global organization please visit

The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organization. KPMG International Limited is a private English company limited by guarantee and does not provide services to clients. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 4366, 1801 K Street NW, Washington, DC 20006.

Connect with us