Chief Revenue Officer of the Domestic Tax Revenue Division at the Ghana Revenue Authority (GRA), Victor Yao Akogo, has disclosed that young entrepreneurs working in the creative industry are entitled to a special tax holiday.
According to him, individuals under the age of 35 who run businesses within the creative economy do not have to pay any tax for their first five years.
Speaking at the 7th edition of Joy FM’s Showbiz Roundtable discussion, which explored the theme ‘Taxation and the Future of Ghana’s Creative & Digital Economy,’ Akogo explained that the incentive was introduced to give young people in the sector some breathing space to grow their businesses.
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“If you are a young entrepreneur and you are into the creative industry, and your age, respectfully, it’s not above 35 years, you are exempted from paying tax for five years. After that exemption five years, you are also given a reduced rate of 15% to pay as your corporate tax or personal income tax.
“Even if you are located at a rural area or elsewhere or not in a district capital, you are asked to pay 12.5% as tax. So you pay a reduced tax rate as a young entrepreneur,” he explained.
Akogo noted that the relief is not limited to creatives alone. Young entrepreneurs in tourism, horticulture, plant medicine, and manufacturing also qualify for the same incentive.
He said the goal is to encourage more young people to start businesses, and contribute to job creation in these sectors.
He further mentioned that creatives and other entrepreneurs who benefit from the five-year exemption have the option to request an extension.
“Creatives, tourism, horticulture, plant medicine, okay, manufacturing. So these industries have been specifically mentioned that these are the people who enjoy this incentive as a young entrepreneur to encourage them to be in business. Five years, you are exempted from paying tax. You can ask for an extension of that. That one too is there,” he said.
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