Ghana’s tax administration is undergoing a major transformation, becoming increasingly data-driven, enforcement-focused, and ambitious in its approach to revenue collection, according to a new report by law firm Bentsi-Enchill, Letsa & Ankomah (BELA).
The firm’s Tax Outlook 2026 report notes that enhanced digital capabilities at the Ghana Revenue Authority (GRA), coupled with significant reforms in value-added tax (VAT) administration and transfer pricing oversight, are reshaping the tax compliance landscape for businesses operating in Ghana.
The report comes as the government intensifies efforts to boost domestic revenue generation ahead of the anticipated completion of its International Monetary Fund-supported programme in 2026. These efforts are part of broader fiscal consolidation measures under the IMF’s US$3 billion Extended Credit Facility programme secured in 2023 following Ghana’s debt and balance-of-payments crisis.
According to BELA, businesses can expect tax discrepancies to be identified much earlier, with audits becoming more targeted and less tolerance shown toward informal tax practices. The firm observed that tax compliance is shifting from periodic audits to continuous monitoring powered by digital technology and real-time data analysis.
A key component of this new approach is the implementation of the Integrated Tax Administration System (ITAS), which became operational on April 1, 2026. The platform automates key tax functions, including registration, filing, payments, assessments, and audits. It also allows the GRA to cross-check taxpayer information with records from financial institutions, the Lands Commission, the Registrar of Companies, and immigration authorities.
BELA noted that the system significantly strengthens the tax authority’s ability to detect inconsistencies and conduct more precise audits.
The report also highlighted the nationwide rollout of Fiscal Electronic Devices (FEDs), which are designed to improve VAT compliance by transmitting sales transaction data directly from business point-of-sale systems to the GRA in real time. This creates a continuous audit trail and reduces opportunities for underreporting revenue.
According to the firm, businesses operating under the FED system can no longer rely on annual audits as the primary compliance checkpoint, as tax authorities now have ongoing visibility into transactions.
These developments form part of Ghana’s broader strategy to improve tax collection after the country’s tax-to-GDP ratio declined to approximately 13.8 percent in 2022, below the average for sub-Saharan Africa and lower than levels required to sustainably finance public services.
Although total tax revenue increased from GH¢113.4 billion in 2024 to GH¢153.5 billion in 2025, BELA cautioned that some of this growth was driven by inflation rather than a meaningful expansion of the tax base.
The report further noted that tax policy has become central to Ghana’s economic management strategy following the country’s loss of access to international capital markets and subsequent sovereign debt restructuring programme.
Among the key reforms introduced is a new VAT framework that took effect in January 2026. The changes eliminated the COVID-19 Levy, revised the VAT calculation system, and introduced deductibility for certain levies that were previously treated as business expenses.
The abolition of the VAT Flat Rate Scheme was also highlighted as a significant change, requiring many retailers and wholesalers to transition to the standard VAT system with more rigorous invoicing and reporting requirements.
BELA expects sectors such as mining, oil and gas, telecommunications, financial services, real estate, and import-dependent industries to face increased scrutiny from tax authorities. The report noted that the GRA’s transfer pricing unit is intensifying audits using Country-by-Country Reporting data and international information-sharing arrangements to identify multinational companies that may be reporting unusually low profits in Ghana compared to their global operations.
The firm warned that tax enforcement could become even more aggressive if fiscal pressures re-emerge after the IMF programme concludes, particularly if revenue performance weakens or external economic shocks affect commodity prices and exchange rate stability.
However, BELA also pointed to signs of improving macroeconomic conditions. Inflation reportedly declined significantly during 2025, falling from 23.8 percent at the beginning of the year to 5.4 percent by December, while the Bank of Ghana reduced its benchmark policy rate by 1,000 basis points to 18 percent.
The report concludes that businesses that invest early in strong tax governance, documentation, and compliance systems will be better equipped to adapt to the evolving tax environment while minimizing the risk of penalties, disputes, and reputational damage.
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