Transfer pricing - Ghana
The first transfer pricing regulations in Ghana entered into force on 14 September 2012. Ghana introduced New Transfer Pricing regulations (i.e. TP Regulations, 2020), effective from November, 2020. These new regulations replace TP Regulations of 2012. TP Regulations 2020 intend to simplify its administration, reduce compliance burden on eligible taxpayers, and provide clarity on key technical terms. It also aligns the Ghana’s TP regime with the Base Erosion and Profit Shifting (‘BEPS’) initiative of the Organisation for Economic Co-operation and Development.
Apart from arm’s length pricing, the provisions in the income tax law provide for the application of formulary apportionment. The transfer pricing provision in the income tax law can be found in section 31 of the Income Tax Act, 2015 (Act 896), as amended (ITA). Section 31(5)(b) and (c) of the ITA provides that the Commissioner-General may, in carrying out an adjustment, recharacterize the source and type of any income, loss, amount or payment, and apportion and allocate expenditure, including the activities of a permanent establishment based on turnover.
Ghana is a signatory to the Multilateral Competent Authority Agreement on Automatic Exchange of Financial Account Information and Intended First Information Exchange Date, which allows Ghana to exchange information with 109 other countries.