it has been previously criticized by international organizations for measures that could facilitate tax avoidance. It also offers specific tax incentives to attract foreign investment. In 2023, the Tax Justice Network ranked Ghana 60th on its Corporate Tax Haven Index and 70th on its Financial Secrecy Index, showing it has some, but not extreme, levels of tax secrecy compared to major havens.

Reasons Ghana is not considered a traditional tax haven

• Taxation of residents and non-residents: Ghana operates a conventional tax system where tax residents are taxed on their worldwide income, and non-residents are taxed on their Ghana-sourced income. This is contrary to the minimal or zero tax policies of classic tax havens.
• Progressive income tax: The country has a progressive personal income tax structure, with rates increasing with income, and corporate tax is generally levied at a rate of 25%.
• Low secrecy ranking: The Financial Secrecy Index, which ranks jurisdictions based on their financial transparency, puts Ghana at 70th as of 2023. While not fully transparent, it indicates significantly less financial secrecy than top-ranking tax havens.
• OECD and IMF engagement: Ghana actively engages with international bodies like the OECD and the International Monetary Fund (IMF) on tax matters. The IMF regularly reviews and monitors Ghana's financial management and reforms.

Concerns over tax concessions and financial secrecy

• Free zone tax incentives: Historically, companies operating in Ghana's Free Zones have received significant tax benefits, such as a 10-year corporate tax holiday. After this period, they are taxed at a reduced rate for export earnings. Critics have raised concerns that these broad exemptions create opportunities for tax avoidance.
• Criticism from watchdogs: The Tax Justice Network has criticized Ghana for its tax loss to international tax havens and for past legislative actions that could have limited future tax revenue. In 2010, the OECD also warned Ghana against developing into a tax haven.
• Past transparency issues: In a 2018 peer review by the OECD's Global Forum, Ghana received a "Partially Compliant" overall rating for its exchange of tax information, indicating historical weaknesses in its information-sharing processes.
• High-risk for corruption: Transparency International has highlighted widespread corruption issues in Ghana, particularly concerning public services and government contracts. This environment raises concerns that financial and tax systems could be exploited by corrupt actors.