Ghana Investment Income Guide 2026

Overview — Investment Income Taxation

Ghana taxes investment income through withholding taxes at source for most passive income streams. The withholding tax is generally a final tax for resident individuals, meaning no further tax reporting is required. For companies, withheld tax is creditable against corporate tax. For non-residents, withholding tax rates may be reduced under applicable double tax treaties. The Ghana Revenue Authority administers all withholding tax under the Income Tax Act, 2015 (Act 896). The investment landscape in Ghana includes Treasury bills, bonds, listed shares, mutual funds, and bank deposits, each with distinct tax treatments.

Dividends — 8% WHT (Final for Residents)

Dividends paid by Ghanaian-resident companies are subject to withholding tax at 8% for resident shareholders. This is a final tax for resident individuals, meaning the dividend income is not included in the individual's progressive income tax assessment. For corporate shareholders, the 8% WHT is a creditable advance payment against their CIT liability. For non-residents, the dividend WHT rate is generally 10% (reduced to 7.5–8% under some DTTs). Dividends from mining companies may be subject to a higher rate. Qualifying dividends from companies listed on the GSE may benefit from reduced rates under certain conditions.

Interest Income — Treasury Bills 8%, Bank Deposits 1%

Interest income is taxed at different rates depending on the source:

• Treasury bills (91-day, 182-day, 364-day) — 8% final WHT for individuals (deducted at source by the Bank of Ghana or custodians)
• Government bonds — 8% WHT on interest payments
• Bank deposit interest — 1% WHT (non-final — must be included in the annual tax return and may be subject to additional progressive tax)
• Corporate bonds — 8% WHT on interest
• Foreign currency deposits — 1% WHT for residents

The 8% rate on Treasury bills and government bonds is considered favourable for individual investors and is part of the government's strategy to encourage savings in government securities. The low 1% rate on bank deposits is not a final tax — interest must be declared in the annual tax return and may be taxed up to the individual's marginal rate, with credit given for the 1% WHT.

Capital Gains — GSE Exemption

As noted in the capital gains guide, gains from the disposal of shares listed on the Ghana Stock Exchange (GSE) are exempt from capital gains tax. Gains from the disposal of unlisted shares or other securities are subject to CGT at 15%. Government securities (T-bills, bonds) are also exempt from CGT. The GSE exemption applies to all listed equities, bonds, and exchange-traded funds listed on the GSE. This exemption has been instrumental in attracting portfolio investment to the Ghanaian capital market.

Mutual Funds & Collective Investment Schemes

Distributions from mutual funds and collective investment schemes (unit trusts) are generally tax-free in the hands of individual investors in Ghana. The fund itself is taxed on its investment income at a reduced rate. This favourable treatment was introduced to encourage retail participation in collective investment schemes. For corporate investors, distributions may be subject to standard CIT rates. The Securities and Exchange Commission (SEC) regulates all collective investment schemes in Ghana. Income from money market funds, equity funds, and balanced funds is eligible for the exemption.

Treasury Bills — Practical Guide

Treasury bills are the most popular investment vehicle in Ghana, available in 91-day, 182-day, and 364-day tenors. They are issued by the Bank of Ghana on behalf of the Government. The discount (interest) is paid upfront at the time of purchase. The 8% WHT is deducted at source by the Bank of Ghana or the custodian. For a GHS 10,000, 364-day T-bill at a discount rate of 25%, the investor receives GHS 7,500 upfront (GHS 2,500 discount). The WHT is 8% of GHS 2,500 = GHS 200, net upfront return of GHS 2,300. T-bills are widely available through commercial banks, investment houses, and the Bank of Ghana's primary dealer system. The minimum investment is typically GHS 1,000.

FAQs

Do I need to report dividend income on my tax return?

If you are a resident individual, the 8% WHT on dividends is final, so no further reporting is needed. Non-residents and corporate shareholders should report and claim treaty relief where applicable.

Are foreign investment income and capital gains taxable in Ghana?

Yes, tax residents are taxed on worldwide investment income. Foreign dividends, interest, and capital gains should be declared in the annual tax return. Foreign tax credits may be available under DTTs.

Can I claim a refund if WHT exceeds my tax liability?

Yes, where the WHT deducted exceeds the final tax liability (e.g., for an individual with total income below the threshold), you can claim a refund from GRA by filing an annual return.

Disclaimer

This guide provides general information about Ghanaian investment income taxation for the 2026 tax year. Tax laws and rates may change. Always consult with a qualified Ghanaian tax advisor or the Ghana Revenue Authority for advice specific to your situation. InvestmentKit does not provide tax advice.