Double taxation would require an international company or an international businessman to tax the same income twice or more. In other words, a person who fits into this category risks paying taxes both in the country of residence and in the country of operation of the business. In essence, the DTTs go further to promote foreign investment and trade, provide a stable and predictable tax environment, reduce tax evasion, and improve relations between the two countries. DTTs generally replace any conflicting tax provisions that States Parties may have. countries where Ghana has DTTs with the following countries; Taxpayers can also benefit from tax credits under SDRs. In this case, your country of residence would grant you a deduction with respect to the tax incurred in Ghana in order to essentially grant a facility if the income is not covered by a certain exemption. As a result, the deduction from the tax is set off against the same income in order to limit the credit to the reduction of the two taxes. The government has signed double taxation treaties with 10 countries to provide investors with a stable and favourable tax system. Ghana has SDRs with the following countries for the double taxation exemption of Ghana`s income: Belgium, Denmark, France, United Kingdom, Switzerland, Mauritius, South Africa, Italy, Netherlands and Germany. Both countries use the imputation method to eliminate double taxation.
For dividends received by a company established in Mauritius, which holds at least 5% of the capital of the paying company, Mauritius also grants a credit for ghanaian tax payable in respect of the profits on which this dividend is paid. Similarly, Ghana grants credit in respect of dividends paid by a Mauritian company when it is received from a company established in Ghana, which holds at least 10% of the capital of the paying company. ”In Ghana, we know things are working and we wanted to make this deal to make a very important step for Ireland to increase trade with West Africa,” he said. The government expressed hope to sign more agreements to encourage investment and thus facilitate the transfer of skills and technology. Commenting on the agreement, Mr. Ofori-Atta said Ghana is interested in areas of partnership in the areas of financial services, health and education, as well as information and communication technologies. ”Ghana had also had talks with Iran, Norway, Luxembourg, Portugal, Korea, Saudi Arabia, Nigeria and the United Arab Emirates, but they have yet to sign an agreement,” he added. She said that under the country`s Technology Transfer Agreements (ATAs), the transfer fee for payment of the transferred technology must be made through a registered agreement and must also apply to the laws of Ghana. . .