Engaging a contractor in Ghana runs on a services agreement and an invoice from an individual identified for tax by a Ghana Card PIN, a sole proprietorship or a limited company. The contractor pays their own income tax, 0% to 35%, and a foreign client with no Ghanaian presence pays the invoice gross. The legal risk is classification: the Labour Act 2003 sets a written-contract requirement and notice rules for employment, and a full-time contractor on your schedule looks like it. This guide covers the contractor’s tax, VAT, reclassification, the contract and the payer’s paperwork. The payment side is on our Ghana payouts page. It is general information, not legal advice.
Individual, sole proprietor or company
Individual. For individuals the Ghana Card PIN replaced the GRA-issued TIN as the taxpayer identifier from 1 April 2021 (GRA, checked 2026-10-26). A contractor invoicing in their own name needs it, and you can ask for it on the invoice.
Sole proprietor or company. A contractor working through a registered business name or a limited company invoices from that entity. Ask for the registration details and which entity the bank account belongs to, so the payee name on the transfer matches the invoice.
The contractor’s tax
Income tax. Residents are taxed on worldwide income: 0% on the first GHS 7,056 a year, then 5%, 10%, 17.5%, 25%, 30% and 35% above GHS 600,000, under the Income Tax Amendment Act 2026 (PwC, reviewed 2026-03-11, checked 2026-10-26).
VAT. Under the VAT Act 2025, effective 1 January 2026, the unified rate is 15%. For services there is no turnover threshold: a person engaged in a taxable activity registers within 30 days (EY, checked 2026-10-26). The sources we found do not settle whether exported services are zero-rated, so agree in the contract whether the fee is quoted with or without VAT.
Withholding. Ghana withholds 7.5% on payments to resident individuals for services, not a final tax, and 20% final on services paid to non-residents (PwC, reviewed 2026-03-11, checked 2026-10-26). These apply to payers within Ghana’s tax net. A client with a Ghanaian subsidiary or branch should get local advice first.
Reclassification risk
The Labour Act 2003 requires a written contract of employment where the employment lasts six months or more, and sets one month’s notice for contracts of three years or more, two weeks’ for shorter ones (Labour Act 2003, ss. 12 and 17, checked 2026-10-26). The label does not decide whether a person is an employee. Vendor guides describe control over how the work is done as the central test; we found no Ghanaian ruling to cite, so treat this as a practical guide (contractor misclassification).
A single client, fixed hours, a monthly fee and your instructions are the facts a claimant would use. If the person is reclassified, SSNIT pension contributions follow: 13% of basic salary from the employer and 5.5% from the employee (PwC, reviewed 2026-03-11, checked 2026-10-26). If the role is a job, hire through an EOR.
What to put in the contract
- A written services agreement scoped to deliverables, with the fee, currency, receiving account and who bears transfer charges.
- An invoice for every payment, matched to the payment reference.
- IP assignment in writing. We found no Ghanaian default that gives a client a contractor’s code; assign the rights explicitly and ask local counsel about formalities.
- Independence markers: the contractor’s own equipment and schedule, the right to work for other clients, and a fee tied to deliverables.
- Whether the fee includes VAT.
Taxes and paperwork
The contractor’s side. Hold a Ghana Card PIN, issue an invoice per payment, register for VAT if taxable, and file their own return.
The client’s side. Pay gross against the invoice. US payers collect a W-8BEN from an individual and file no 1099: pay for work done in Ghana is foreign-source income (irs.gov, checked 2026-10-26). Ghana is not on the IRS list of US income tax treaties (irs.gov, checked 2026-10-26).
How to pay contractors in Ghana
Wise delivers cedis to a Ghanaian bank account, usually the same working day once converted, and to MTN, Airtel-Tigo and Telecel wallets up to GHS 2,800 (Wise Help Centre, checked 2026-10-26). A SWIFT wire is the alternative. Rails, costs and platforms are compared on our Ghana payouts page.
Contractor of Record in Ghana
A Contractor of Record is the contracting party for the contractor and reduces reclassification risk; it does not remove it. In Ghana the work still has to look independent, and the COR also collects invoices, keeps contracts consistent across a team and flags engagements that look like dependency. Read the liability clause in the contract rather than the product name. Where the role is a job, with your hours, your tools and core work, hire through an EOR instead. Compare providers in our COR rating.