INCENTIVES

The extensive and generous incentives packaged in the Free Zone Act (1995) for investors interested in developing and operating free zone enclaves and single-factory free zones in Ghana include:

i. 100% exemption from payment of direct and indirect duties and levies on all imports for production and exports from free zones;

ii. 100% exemption from payment of income tax on profits for 10 years and shall not exceed 8 per cent thereafter;

iii. Total exemption from payment of withholding taxes from dividends arising out of free zone investments;

iv. Relief from double taxation for foreign investors and employees;

v. No import licensing requirements;

vi. Minimal customs formalities;

vii. 100% ownership of shares by any investor - foreign or national

- in a free zone enterprise is allowed;

viii. 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;

ix. Free Zone investors are permitted to operate foreign currency accounts with banks in Ghana;

x. 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.