Legal Tax


Legal Tax Strategies

Taxation is critical to the development of any economy and the growth of Small and Medium Enterprises (SMEs). In Ghana, the role of SMEs is crucial in pushing the country's socioeconomic development agenda forward.


In Ghana, today, taxes have a substantial impact on the operations of SMEs, and it's necessary to structure your business and operations properly to only pay your fair tax laibilities and not allow your business to collapse under the multiplicity of taxes.

Tax Evasion is illegal and/or criminal, and we don't subscribe to that. However, tax avoidance is not illegal or criminal, as tax systems all over the world favour businesses and investors - Ghana not any different if you know what you're doing.

High taxes can stifle SMEs' growth and profitability, limiting their ability to compete with larger enterprises and invest in their long-term success.

We prefer businesses we support lower their tax obligations using very legal tax structures, and creating more employment that overpaying taxes to the tax man - High marginal tax rates can deter labour, saving, investment, and innovation, while individual tax preferences can influence economic resource allocation.

SMEs in Ghana pay a 25 percent tax rate. Where applicable, SMEs are expected to comply with taxes such as PAYE, Corporate and Personal Income taxes.

There are existing tax holidays and/or loopholes in Ghana's Tax System for both Startups and MSMEs that many businesses have failed to take advantage of.


Profit Margin Cuts

Any tax adjustment will have a big impact on businesses. A rise in income tax, for example, will reduce the consumer's disposable income (income after taxes). This means that individuals will have less money to spend on goods and services, which will lead to lower demand and sales revenue for the company.

High taxes can reduce profit margins, limiting SMEs' capacity to reinvest revenues in business growth.

Tax payments can have an impact on overall competitiveness and pricing tactics, resulting in price increases that customers may be unwilling to pay.

High taxes might affect SMEs' profitability, limiting their ability to invest in expansion prospects or pay greater wages to staff. This can also lead to a reduction in cash flow, making it harder for SMEs to fund operating expenses or invest in new equipment or technology.

Reduced Employment Opportunities

Higher taxes reduce employment by limiting the availability of capital to be invested in job-creating enterprises or by reducing the amount of money available for customers for purchasing products and services, resulting in a loss of business for those purveyors.

High taxes can limit SMEs' ability to create jobs because they may lack the funds to hire new employees or carry out ordinary business operations.

High taxes can make it more difficult for SMEs to hire new workers, discouraging job creation and growth.

As SMEs struggle to manage their tax burden, this can also lead to increased layoffs or reduced hours for existing employees.

Cash Flow Issues

A cash flow problem develops when the amount of money flowing out of the business exceeds the amount of money coming in.

This results in a shortage of liquidity, which can impair the business owner's capacity to pay suppliers, repay debts, pay bills and manage the business properly.

High taxes can have an impact on SMEs' cash flow and decrease their ability to invest in business growth possibilities.

Taxes can make it difficult for SMEs to get financing or service high-interest debts, resulting in inefficient operations and diminished profitability.

Innovation is the source of technological progress and, ultimately, the main driver of long-run economic growth.

High taxes can also discourage innovation by limiting the financial resources that SMEs can devote to research and development.

This can lead to reduced innovation, which can negatively impact SMEs' ability to stay competitive in rapidly evolving markets.

It's adviseable for the government to cut income taxes on profits for small business owners to help to produce an increase in entrepreneurship and innovation.

Providing income tax incentives will increase the after-tax profits of the entrepreneur and, therefore, increase the motivation to engage in entrepreneurial or innovative activity.

Reduced Competitiveness

In many industries, SMEs experience severe rivalry, and high taxes might make it more difficult for them to compete with larger enterprises that can better absorb the tax burden.

This might lead to a loss of market share and revenue for SMEs.


We only provide specific tax support to existing webhosting customers (or subscribers) of this platform.

D. COMPLIANCE is required to share your business information with local tax authorities who request it.