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Ghana’s government wants to help startups grow with this new tax policy
Startup businesses will enjoy a 3 year non payment of tax to boost the business and help raise it to a higher level.
Ghana's minister for Business Development, Dr Mohammed Awal Ibrahim
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This follows an announcement from the country’s minister for Business Development, Dr Mohammed Awal Ibrahim revealing that the government will not tax startup business within three years.
The minister’s announcement confirms the government’s commitment to enabling the local businesses to flourish in the country.
The minister who spoke as the Guest of Honour at the 2018 Ghana Small and Medium-sized Enterprises and Young CEOs summit at Kempinski in Accra, the country’s capital revealed that startup businesses will be given a 3-year tax break during the first 3 years of setup.
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He explained the ministry is reviewing the Procurement Law in the country which will make the local businesses be considered much more than the foreign businesses in the procurement businesses.
The minister further indicated that the ministry a bill will send a startup law to parliament that will enable startup business not to pay taxes within the first three years. Any money earned within the three years will be pushed back into the company.
The minister then added that, “As a further commitment to creating a supportive ecosystem for young Ghanaian entrepreneurs of age 35 years and below, who start their own businesses, government will through the National Entrepreneurship and Innovation Plan (NEIP), grant tax holidays based on the number of persons employed by a start-up or early-stage business.”
The recent budget that was presented to Parliament by Finance Minister Ken Ofori-Atta in 2017, the government promised to grant tax holidays to young business owners who will register with the National Entrepreneurship and Innovation Plan (NEIP).
Dr Ibrahim Mohammed Awal assured entrepreneurs that the relief will be enforced before the end of 2019.
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This year’s SMEs Young CEOs Summit themed Corporate Leadership Governance & Technology: Strong Pillars for Business & Economic Growth” was the second since its inception.
Some of the key topics discussed at the summit included; Corporate Leadership Governance for Business growth, the impact of the fourth industrial revolution on SMEs, the next frontier in SME Banking and Finance, Policy and Regulatory issues pertaining to doing business in Ghana and the Ghanaian Economy.
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