Ghana’s mining sector is governed by a comprehensive taxation framework designed to maximise revenue while fostering a favourable environment for exploration and mining entities.

 

22 February 25

Other Insights:

Taxation for Mining Entities
Mining operations in Ghana are subject to a corporate income tox rote of 35 percent on chargeable income. To ensure clarity and fairness, each separate mineral operation is treated as on independent business, and tax liability is calculated individually for each year of assessment.

Holders of mineral rights may also benefit from specific tax exemptions and incentives, including:

  • Customs Duty Exemption
    Import duty ex- emptions for plant, machinery, equipment, and accessories exclusively used for mining operations.
  • Income Tax Exemptions
    Exemptions for furnished accommodation provided at the mine site for staff.
  • Immigration and Remittance Quotas
    Approved expatriate personnel receive immigration quotas and personal remittance allowances free from tax on outward money transfers.

Additionally, the Minister of Lands and Natural Resources con enter into stability agreements with mining leaseholders. These agreements, void for up to 15 years and subject to parliamentary ratification, ensure thot mining companies ore protected from adverse fiscal changes, including royalties, taxes, fees, and other fiscal imports.

Mining companies are also subject to o 15% withholding tax on natural resource payments and royalties. Furthermore, under the Growth and Sustainability Levy Act, 2023 (Act J095), mining companies ore required to pay a 1 percent levy on their gross production. This levy is applicable for the 2023, 2024, and 2025 assessment years, with payments due quarterly.

Royalties Payable
Beyond taxes, mining companies in Ghana must pay royalties to the State, amounting to 5 percent of the total revenue earned from mining operations.

Ghana’s taxation and royalty framework reflects a balance between ensuring fair contributions from mining entities and providing incentives to promote growth in the sector. With stable agreements, clear taxation rules, and equitable royalty rates, the frame— work supports both government revenue generation and the sustainable development of Ghana’s mining industry.