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13.4.3. Documentation Requirements

Disclosure Requirements

Taxpayers engaged in transactions with related parties are required to file a transfer pricing return within 4 months after the end of the tax year. The return must be filed on prescribed Forms 22A and 22B.

Standard Documentation

Taxpayers are required to maintain transfer pricing reports and contemporaneous documentation in relation to their transactions with related parties/persons in a controlled relationship on an annual basis. As from the year ending 31 December 2020, Ghana introduced the three-tiered transfer pricing documentation requirement consisting of Master file, Local file, and Country-by-Country (CbC) report. The transfer pricing documentation is required to be submitted electronically to the tax authorities (but the electronic filing or portal is yet to be notified by the tax authorities).

Master file

The contents of the Master file include:

  • An overview of the multinational enterprise (MNE) group business showing the legal and ownership structure of the group and the geographical location of operating entities;
  • Details of all the business activities of the group companies along with information regarding important drivers of business profit; and
  • Details of the supply chain of at least five of the largest products or service offerings of the group based on turnover.

The Master file is required to be submitted to the tax authorities within 4 months after the end of the tax year.

Local file

The contemporaneous documentation must include a Local file, which is required to be submitted to tax authorities within 4 months after the end of the tax year.

Safe Harbor

The new regulations have introduced certain safe harbor rules that provide an exemption from maintaining contemporaneous transfer pricing documentation, specifically Master file and Local file, where:

  • An arrangement/transaction with another person in a controlled relationship is of a value of the GHS equivalent of less than USD 200,000; and
  • Low value-adding intra-group services (with the exception of certain services) with a charge not exceeding the GHS equivalent of USD 200,000 and mark-up not exceeding 3% of relevant costs.

Also, taxpayers may elect for an exemption from maintaining contemporaneous transfer pricing documentation with respect to controlled arrangements that are part of a technology transfer agreement registered with the Ghana Investment Promotion Centre (GIPC).  The election must be notified to the tax authorities in writing within 30 days from entering into a technology transfer agreement and applies for 3 years. It is granted if the remuneration agreed does not exceed the threshold of 2% of net profits with respect to royalties, know how and management or technical service fees.

Country-by-Country (CbC) Reporting

Ghana introduced the CbC reporting requirement under the new Transfer Pricing Regulations which apply from the year ending 31 December 2020. The CbC reporting requirements apply to ultimate parent entities or constituent entities of a MNE meeting the consolidated group revenue threshold of GHS 2.9 billion in the previous year. The required information includes the following for each jurisdiction:

  • Table 1:
    • revenues (unrelated parties, related parties, and total);
    • profit (loss) before tax;
    • income tax paid (cash basis);
    • income tax accrued - current year;
    • stated capital;
    • accumulated earnings;
    • number of employees; and
    • tangible assets - other than cash and cash equivalents.
  • Table 2:
    • constituent entities resident in each tax jurisdiction (including Tax ID and address);
    • jurisdiction of organization or incorporation if different from jurisdiction of residence; and
    • main business activities of each constituent entity.

The CbC report is required to be submitted to the tax authorities within 12 months following the end of the reporting year. Resident constituent entities are required to file CbC reports unless a report has been filed outside Ghana and that report will be exchanged with Ghana. In that case, the filing of a notification with the tax authorities by the CbC reporting deadline suffices. Note, however, that Ghana has not yet entered into Competent Authority Agreements (CAAs) or adhered to the OECD multilateral CAA for the exchange of CbC reports. Therefore, constituent entities of MNE groups meeting the threshold may still be required to meet the secondary local reporting requirements in Ghana.

Language of Documentation

The documentation is required to be in English.


The transfer pricing documentation is required to be filed within the stipulated deadlines post which penalties may be levied by the tax authorities.

Failure to file an annual transfer pricing return within the deadline attracts a penalty of GHS 500 and GHS 10 for each day the default continues.

Failure to file the transfer pricing documentation will attract the following penalties:

  • For deliberate failure to file documentation, a penalty of 75% of tax attributable to the period determined by the tax authorities; and
  • For other cases, lesser of the amount referred above along with 250 currency points for each month or part of a month, the failure continues.