The Stravise Ghana team sat down with a taxation specialist seeking a wholesome answer to the most asked taxation question in the Ghanaian small business community – What do I need to know about taxes?

 

Speaker Profile

Malcolm Arthur, a Chartered Accountant with the Institute of Chartered Accountants, Ghana (ICAG), and a Chartered Tax Practitioner with the Chartered Institute of Taxation, Ghana (CITG), who was awarded Best Student in Strategic Tax Planning during the CITG August 2025 Professional Examination, shares insights on tax compliance essentials for small businesses in Ghana.

 

Team Stravise: As a small business owner in Ghana, what essential tax-related topics should I educate myself on to operate successfully?

Malcolm: Every entrepreneur should understand that taxation is not merely a legal obligation but an important aspect of running a sustainable business. The first step is ensuring that the business is properly registered with the Office of the Registrar of Companies (ORC) and subsequently registered with the Ghana Revenue Authority (GRA) to obtain a Taxpayer Identification Number (TIN), which is now integrated into the Ghana Card for individuals.

 

As a business owner, you should understand:

• The taxes applicable to your business.
• Statutory filing and payment deadlines.
• Record-keeping requirements.
• Invoicing requirements, particularly under the VAT regime.
• Withholding tax obligations.
• Penalties for non-compliance.
• Available tax reliefs and exemptions.

Business owners should also appreciate that tax compliance enhances business credibility, facilitates access to government contracts, improves eligibility for bank financing, and reduces the risk of costly audits and penalties.

Under the Revenue Administration Act, 2016 (Act 915), taxpayers have an obligation to register with the GRA, maintain proper accounting records, file accurate tax returns on time, pay taxes when due, and cooperate during tax audits and investigations. Failure to comply may result in penalties, interest charges, and prosecution.

 

Team Stravise: I heard of tax refunds. Is that available in Ghana?

Malcolm: Tax refunds are recognized under the Revenue Administration Act, 2016 (Act 915). Refunds commonly arise where excess tax has been paid, withholding tax exceeds the final tax liability, VAT input tax exceeds output tax in qualifying circumstances (particularly for exporters and businesses making zero-rated supplies), and assessments are later revised in favor of the taxpayer.

To obtain a refund, the taxpayer generally submits an application supported by relevant documentation. The Commissioner-General may verify the claim through an audit before approving payment or applying the amount as a credit against future tax liabilities. Businesses should maintain proper documentation because unsupported refund claims are unlikely to be approved.

 

Team Stravise: What’s the most expensive tax mistake you’ve seen a small business make?

Malcolm: One of the costliest mistakes is failing to maintain proper accounting records. Many businesses do not separate personal and business finances. They fail to keep invoices and receipts, cannot substantiate expenses, and under-declare their income. During a tax audit, the GRA may assess taxes based on the best information available if adequate records are not maintained.

 

Other expensive mistakes include:

• Failing to register for VAT when legally required.
• Collecting VAT without remitting it.
• Failing to deduct withholding taxes.
• Missing filing deadlines.
• Assuming small businesses are exempt from tax obligations.

These mistakes often result in penalties for failure to file taxes, interest for failure to pay taxes, additional tax assessments, and possible prosecution in severe cases.

 

Team Stravise: What kind of financial records should I keep from day one?

Malcolm: The Revenue Administration Act, 2016 (Act 915) requires taxpayers to maintain sufficient records to determine their tax liabilities. Businesses should retain:

• Sales invoices.
• VAT invoices.
• Purchase invoices.
• Receipts.
• Cash books.
• Bank statements.
• Payroll records.
• Inventory records.
• Supplier statements.
• Customer statements.
• Payment vouchers.
• Contracts.
• Withholding tax certificates.
• Import and customs documents.
• Fixed asset registers.

These records should be retained for at least six years after the relevant tax period, or longer where required under an ongoing audit or legal proceedings. Digital record-keeping is acceptable provided the records remain accurate, complete, and readily accessible.

 

Team Stravise: At what point do I hire an accountant instead of doing everything myself?

Malcolm: It is advisable to engage an accountant or tax consultant when:

• Your annual turnover begins to grow significantly.
• You become VAT registered.
• You hire employees.
• Your transactions become more complex.
• You seek external financing.
• You require audited financial statements.
• You receive notices from the GRA.
• You need tax planning or advisory services.

Hiring an accountant or tax consultant early often costs far less than correcting years of tax errors or facing penalties and interest arising from non-compliance.

 

Team Stravise: What relevant tax skills should entrepreneurs learn right now that will be relevant in five years?

Malcolm: The future of tax administration is increasingly digital. Entrepreneurs should develop skills in:

• Digital bookkeeping and accounting software.
• VAT compliance.
• Payroll management and PAYE administration.
• Withholding tax administration.
• Financial statement interpretation.
• Cash flow management.
• Tax planning within the law.
• Maintaining proper documentation for audits.
• Using GRA online filing platforms.
• Understanding electronic payment systems.

Entrepreneurs should also develop a culture of continuous learning because Ghana’s tax laws continue to evolve through annual amendments, administrative guidelines, and digital transformation initiatives. Businesses that embrace technology, maintain accurate records, and remain compliant will be better positioned to grow and avoid unnecessary tax disputes.

 

Team Stravise: Any last words?

Malcolm: Tax compliance should be viewed as an investment in the long-term success of a business rather than merely a statutory obligation.

A small business that understands its tax responsibilities under the Income Tax Act, 2015 (Act 896) (as amended), the VAT Act, 2025 (Act 1151), and the Revenue Administration Act, 2016 (Act 915) is better positioned to minimize tax risks, improve profitability, and build credibility with customers, financial institutions, investors, and regulators.

It is vital to note that different taxes, incentives, and allowable deductions apply to businesses based on their legal structure (individual, partnership, or company), location, activity, and sector of operation.