Regulatory Alerts2006-01-01
Foreign Exchange Act 2006 (Act 723)
The Bank of Ghana issued notices implementing the Foreign Exchange Act 2006 (Act 723) to liberalize foreign investment rules by lifting the ten percent and seventy-four percent caps on non-resident holdings in Ghana Stock Exchange securities. The Act mandates prior regulatory approval for non-residents acquiring ten percent stakes in listed banking stocks and for foreign companies issuing local securities, while guaranteeing full foreign exchange remittability for capital, dividends, and interest. Complementary tax regulations establish a twenty-five percent corporate income rate with a three-year rebate, an eight percent withholding tax on dividends and interest, abolished stamp duties, and capital gains exemptions to facilitate market transactions.