INCENTIVES

There are extensive and generous incentive packages in the Free Zone Act (1995) for investors interested in developing and operating free zone enclaves and single-factory free zones in Ghana include:

• 100% exemption from payment of direct and indirect duties and levies on all imports for production and exports from free zones.
• 100% exemption from payment of income tax on profits for 10 years and shall not exceed 15 per cent thereafter.
• Total exemption from payment of withholding taxes from dividends arising out of free zone investments;
• Relief from double taxation for foreign investors and employees;
• No import licensing requirements;
• Minimal customs formalities;
• 100% ownership of shares by any investor - foreign or national
  • In a free zone enterprise is allowed;
• There are no conditions or restrictions on: repatriation of dividends or net profit; payments for foreign loan servicing; payments of fees and charges for technology transfer agreements; and remittance of proceeds from sale of any interest in a free zone investment;
• Free Zone investors are permitted to operate foreign currency accounts with banks in Ghana;
• At least 70% of annual production of goods and services of Free Zone Enterprises must be exported; consequently up to 30% of annual production of goods and services of a free zone enterprise are authorized for sale in the local market Free Zone investments are guaranteed against nationalization and expropriation.

UNDERSTAND THE FREE ZONES AUTHORITY ACT

The GFZA was established on 31st August, 1995 by an Act of Parliament to enable the establishment of free zones in Ghana for the promotion of economic development; to provide for the regulation of activities in free zones and for related purposes.