Story by: Paul Mensah Nsor
Accra, Ghana - The Executive Business Dialogue, organized by Makers and Partners, brought together business leaders and stakeholders to discuss navigating tax and fiscal reforms and building resilience in Small and Medium Enterprises (SMEs). Maame Yaa Tiwaa Addo-Danquah, Technical Adviser to the Minister of the Interior, emphasized the importance of resilience in withstanding challenges posed by changing regulations and compliance requirements.
In her welcome aaddress maame Yaa Tiwaa Addo-Danquah highlighted Makers and Partners' expertise in advisory services, accounting, tax, and forensic investigation, encouraging businesses to leverage their services. She noted that the forum aimed to bridge gaps between complex fiscal legislation and practical realities of running businesses, providing a platform for networking and understanding tax reforms.
The dialogue focused on Ghana's tax reforms, including the Modified Taxation System and Sustained National Tax Education Programme, designed to simplify tax compliance and enhance transparency. Addo-Danquah stressed that resilience involves constructing a strong foundation to navigate reforms proactively, transitioning from reactive to proactive strategies.
The event featured resource persons sharing insights on compliance and practical roadmaps for SMEs, cutting through jargon and offering actionable advice. Addo-Danquah emphasized that information is key to safeguarding against uncertainties, enabling businesses to make informed decisions protecting employees, stakeholders, and satisfying regulators.
Martin Kobil Yamborigya, Commissioner for Domestic Tax Revenue Division GRA, said the reforms are intended to reduce leakages, close compliance gaps and make the tax system more transparent, predictable and business-friendly. He emphasized that improving voluntary compliance could reduce Ghana’s reliance on external financing.
High tax gaps: The GRA highlighted a significant collection shortfall an estimated 67% tax gap for income tax (collecting roughly 33% of due income tax) and a 61% tax gap for VAT (collecting about 39%).
Higher VAT registration threshold: The VAT registration threshold has been increased from GHS 200,000 to GHS 750,000 in annual turnover, exempting many small businesses from mandatory VAT registration and collection.
Modified/simplified tax regime: A modified taxation scheme (implemented in mid-2025) now offers three simplified structures fixed installment presumptive tax, turnover-based presumptive tax (3% of turnover), and a modified profit-based option intended for resident individuals and sole proprietors with business income sourced in Ghana and annual turnover below GHS 750,000. Limited liability companies and certain professionals are excluded from presumptive schemes.
Presumptive tax bands: Very small businesses with net annual income below specified thresholds may pay minimal flat amounts (examples cited ranged from zero up to GHS 55 annually depending on income bands), while those with turnover between GHS 20,000 and GHS 750,000 may fall under the 3% turnover regime.
Digitalization and administrative reforms: The GRA is accelerating digitization — enabling online filing and payment, rolling out e-invoicing, and planning electronic fiscal devices (E-POS) for small businesses to modernize receipts, improve record-keeping and streamline tax reporting.
Integrated Tax Administration System: Officials proposed an integrated administrative platform to consolidate payments and simplify compliance interactions for taxpayers.
Officials argued that simplifying compliance and reducing the administrative burden will encourage informal and micro businesses to enter the formal tax net, broaden the tax base, and distribute tax burdens more equitably across the population. Commissioner Yamborigya stressed that even modest contributions from large numbers of previously untaxed small operators could materially increase revenues.
Planned actions discussed include further amendments to the Income Tax Act and Excise Tax Act, wider deployment of e-invoicing and E-POS devices, operationalization of the modified taxation scheme with guidance for eligible taxpayers, and continued expansion of online services to enable remote filing and certificate issuance.
For many micro and small enterprises, the higher VAT threshold and simplified taxation options are likely to reduce compliance costs and paperwork. However, businesses that exceed the new thresholds or that are structured as limited companies will continue to be subject to standard tax rules and registration requirements. .
Commissioner Yamborigya framed the reforms as both a duty and an opportunity: easier compliance and simplified tax rules can unlock access to formal financing, reduce penalties for inadvertent noncompliance, and ensure that tax contributions support national development.
The Executive Business Dialogue 2026 aimed to equip SMEs with knowledge and tools to navigate tax reforms effectively, promoting strategic sustainability and resilience in Ghana's business landscape.
