Withholding tax on payments to non-residents in Ghana
Which GRA rates apply when a Ghanaian business pays a foreign supplier, and when the tax must be paid.
When a Ghanaian business pays a non-resident for goods, works or services, it must withhold tax before it pays. The GRA lists 20% for goods, works, services and management or technical fees. Royalties and rents are 15%. Dividends and interest are 8%. The withholding agent files a statement and pays the tax within 15 days after the end of the month. A tax treaty may give a lower rate, so check it before you pay.
- Goods, works and services: 20%.
- Management and technical fees: 20%.
- Royalties and rents: 15%. Dividends and interest: 8%.
- Filing and payment: within 15 days after the end of the month.
How it works
Identify the type of payment: services, goods, royalty, rent, dividend or interest.
Find the rate in the GRA withholding tax table for non-resident persons.
Check whether a double tax treaty between Ghana and the supplier's country gives a lower rate. Keep the supplier's tax residency proof.
Withhold the tax from the payment. Example: a GHS 10,000 service payment at 20% means GHS 2,000 withheld and GHS 8,000 paid to the supplier.
File the statement and pay the tax to the GRA within 15 days after the end of the month.
Legal framework
- Ghana Revenue Authority (GRA) Withholding Tax page, gra.gov.gh.
- Income Tax Act, 2015 (Act 896).
Frequently asked questions
What withholding rate applies to a foreign service provider in Ghana?
The GRA table lists 20% for goods, works and services supplied by a non-resident. Management and technical fees are also 20%. A tax treaty can reduce it.
When must I pay the withheld tax?
The GRA says the withholding agent files the statement and pays within 15 days after the end of the month.
What are the rates for residents?
For residents the GRA lists 3% on goods, 5% on works and 7.5% on services above GHS 2,000 per year. Other categories have their own rates, so check the GRA table.
Does 4invoices calculate or file withholding tax?
No. 4invoices does not calculate withholding tax, file returns or connect to the GRA. You can add a tax rate per line on an invoice, and download the PDF, but the withholding amount is your own calculation.