Young Entrepreneurs tax holiday in Ghana! (Updated!)

A few days ago I made a thread on Twitter about Government's new tax relief for young entrepreneurs. It got a whole lot of people interested. Some even said it was too good to be true but ladies and gentlemen I'm here to let you know that it's very true and is easier than you think to be part of this initiative. Now let's start with the basics; what this is and who needs it.

Last year, government decided to help small businesses run by young people in Ghana (18 to 35 years) make doing business easier and more cost effective. It's no hidden fact that small businesses contribute a lot to the country's economy. More local businesses means more employed people that government doesn't have to worry about, income generation and in some cases foreign currency in the system from international trade and lots more. With this initiative any young Ghanaian business owner will be able to enjoy a tax holiday for 3 to 5 years.

There's no doubt that this is an awesome deal especially now that government is very strict on taxes. Young business owners can now focus on reinvesting and scaling their startups. This also opens doors for small businesses that have been 'running' away from GRA to boldly be legitimate with all the documentation needed to bid for big state and international contracts. No need to be worried about contracts that require a tax record. This will also generally give many business owners peace of mind.

You don't need much to enjoy this tax holiday. The requirements are very simple. You need to be a Ghanaian not younger than 18 and not older than 35. Once you fall within the age group grab your business registration documents. It could be sole proprietorship, partnership or limited liability, it doesn't matter. If you haven't registered your business yet now is the time to get that done! Send a photo copy of the documents including your TIN to the National Entrepreneurship and Innovation Plan (NEIP) office close to Wild Gecko around Shiashi and fill a form. In total you will also need the following documents

1. An application letter on your company's letter head 
2. Company profile with directors and management 
3. Two photocopies of bio data page of your passport 
4. Two copies of your Certificate of incorporation from Registrer General 
5. Two copies of your Certificate to Commence Business from Registrer General 
6. Two copies of your business operating permit licence from AMA, TMA etc (You don't need this if you don't own a shop/office) 
7. Two copies of Regulatory Certificate from your industry regulator like Bank of Ghana, Petroleum Commission, NIC etc (This is for the big boy businesses. If your industry doesn't have a regulatory body you don't need this) 

* Side note: The procedure is not free. You will need to pay 500 Cedis for this initiative. I found this out when I applied for it myself. So carry some cash along! 

So that's about it. A bunch of photocopies, 500 Cedis and letters for tax exemption! It may seem a bit long but the benefits are pretty good. I don't know about you but GRA has been pretty scary these couple of years. If Metro TV and other big businesses were closed down by them for unpaid taxes is it my small business that will survive? 🤣

Now the processing time is about a week but based in the schedule of the NEIP it may be longer. Mine took 2 weeks because they had an event outside Accra but I wasn't in a hurry so it was fine. After your letter from the NEIP stating that you are tax exempt for 1 year is ready you will pick it up and send a copy to GRA. If you have a folder at GRA already that's splendid, all you need to do is present this letter to them and they will make you tax exempt. This isn't 0% tax though. GRA will take 1% of your profits for administrative purposes (making your folder, contacting you if they need to etc). So that's it. I didn't have a folder at GRA so I had to make one.

I also heard there are possible extensions for women and people with disabilities so you may want to ask about that if you fall under these categories. I did a quick search online and found the number for the NEIP office. You can call them on 029 900 3839 (the number looks weird but it works) for more information. Let me know how it goes :)