TAXATION OF DIVIDENDS IN GHANA

Thecla Wricketts, an associate at law firm, Bentsi-Enchill, Letsa & Ankomah explains the taxation dividends in Ghana;

*Except otherwise provided, dividends paid by a resident/Ghanaian company are subject to a final withholding tax of 8%. The recipient will not be taxed on the amount received after the 8% tax withheld.
*Dividends paid by a resident company to another resident company are exempt from the 8% withholding tax where the company that received the dividends owns at least 25% voting rights in the company that paid the dividends. The dividends received however, must be included in the assessable income of the receiving company and taxed at the applicable income tax rate.
*Dividends received in Ghana from a non- resident/foreign company is taxable as an investment income;
1. For individuals, investment income is included in the assessable income of that individual and taxed at a graduated rate from 5% to 25%.
2. For companies, it is included in the assessable income of that company and taxed at the applicable income tax rate.

Author: Thecla Wricketts
Associate at Bentsi-Enchill, Letsa & Ankomah