Ghana’s Exemption regime: President, Diplomatic missions, Religious Organisations among privileged persons

The President of the Republic of Ghana, Diplomats and diplomatic missions, Religious Organisations, Persons with a disability, Donor, and Charity Organisations are among the group described as privileged persons relative to the administration of Tax exemption.

Further to this, there are private Businesses, Personal effects foodstuffs, and Equipment for Trial and Development Partner projects, all considered for exemption of customs taxes, etc.

This is according to the Exemptions Act, 2022 (Act 1083) which seeks to inter alia, provide for an exemptions regime and scope of exemptions; set criteria for exemptions; provide for the administration of exemptions; and provide for monitoring, evaluation, reporting and enforcement of exemptions.

Specifically for the president, the Act provides among others that his salary, allowances, and facilities while in office, and upon leaving office, his pensions and gratuity are exempt from tax per the Constitution.

Also, goods procured by him and his Vice are exempt from customs duties and customs tax, and any person who makes an application in their name but is found not to be for their use commits an offense and is liable to a fine or term of imprisonment.

Diplomats and diplomatic missions

Goods and vehicles imported by or for their official use are exempt from the payment of customs duties and customs taxes.

Also, upon their arrival in the country, the household or personal effects of the employees if not engaged in any business, are exempt from the payment of customs duties and customs taxes.

These however will be based on an annual list submitted by the Minister for Foreign Affairs to the Finance Minister to this effect.

Persons with disability

For this group, books, publications, and documents specially designed for their use are exempt per the recommendation of the Minister for Social Welfare.

Further to this, other items specially designed for their education or scientific, and cultural advancement imported by recommended institutions are exempt.

Also, vehicles specially designed, adapted, and modified for their use are exempt from relevant licensing and approval.

Donor and Charity Organisations

These organizations are covered under the exemption per their items imported for educational and health purposes as a gift for charitable purposes.

An exemption is a waiver or variation of a tax, levy, rate, duty, fee, or charge provided for under an enactment and could also include a variation of the timing of the payment of a tax, levy, rate, duty, fee or charge which results in a reduction in the effective liability of the payer.

Download the full Act here.