Corporate Tax: Ghana ranked among 10 African countries with highest rate
Corporate income tax paid by businesses in the country, has been ranked among the highest corporate tax rates paid in 10 African countries.
Per a survey conducted by OnDeck, a global online small business lending company based in the US, corporate tax in Ghana average some $25,000.
The Corporate tax rate in Ghana is 35% on net profits
This is far below the average corporate tax of $30,000 paid by businesses in Nigeria which emerged among countries with the highest corporate tax rate on the Continent.
Along with Nigeria, countries such as Kenya, Ethiopia, Tanzania and DR Congo all have companies paying an average corporate tax of $30,000.
Per the study, Cameroon has the highest average corporate tax of $30,800 on the continent.
Corporate tax rates vary across the globe and reflect the unique economic needs of every country.
Countries rich in natural resources, for example, often generate a bulk of their tax revenue from high corporate taxes on oil and natural gas companies, allowing other industries to operate in a relatively low-tax environment.
While Africa has some of the least competitive tax rates of any continent, there is still a high degree of variation among the countries.
Below are the average corporate tax rates charged by African countries:
Nigeria – $30,000
While Nigeria’s economy has been affected in recent years and inflation has further affected the country, it still maintains a really high corporate tax rate at 30%.
South Africa – $28000
South Africa’s average tax rate for corporations has consistently hovered at the 28% mark over the past decade.
Kenya – $30,000
East Africa has multiple entries in the list of countries with the highest corporate tax rates, and Kenya kicks off this list.
Ethiopia – $30,000
Ethiopia is another East African country with a really high corporate tax rate in the region.
Ghana – $25,000
Ghana’s average tax rate for corporations has consistently hovered at the 25% mark over the past decade.
Cote d’Ivoire – $25000
On average, the corporate tax rate for Cote d’Ivoire is 25.0%, roughly in line with the global average.
Angola – $25,000
The government generates the bulk of its revenue from national oil and gas companies and, as a result, offers low corporate tax rates.
Tanzania – $30,000
While East Africa has some of the highest corporate tax rates in Africa, there is still a high degree of variation among countries in the region. In Tanzania, the average tax rate is over 30%
DR Congo – $30,000
Cameroon – $30,800
The corporate tax rate in Cameroon has increased to 30.8% and has remained at the same level ever since, making it one of the countries with the highest corporate tax rates.
