Ghana–USA Double Taxation Treaty: 2026 Tax Guide

Is There a Double Taxation Treaty Between Ghana and the United States?

The short answer is no. There is currently no comprehensive double taxation treaty between Ghana and the United States.

The U.S. government explicitly confirms this. According to the official U.S. trade website, “The United States does not have a Bilateral Investment Treaty or a Double Tax Treaty with Ghana.”

Here is what that means in plain language: There is no broad agreement that automatically prevents both countries from taxing the same income. If you earn money in Ghana as a U.S. citizen, or in the U.S. as a Ghanaian resident, both tax systems apply to you.

But that does not automatically mean you pay tax twice. Both countries have domestic laws that provide relief. The key is knowing how to use them.

Why This Confuses So Many Expats and Business Owners

The confusion is understandable. The United States has income tax treaties with more than 60 countries, including many in Europe and Asia. Someone moving from the UK to Ghana might assume the same protections exist. They do not.

Three things add to the confusion:

The 2001 shipping and aircraft agreement. Ghana and the U.S. signed a narrow reciprocal exemption for international shipping and aircraft operations. It covers income from operating ships or aircraft internationally, time or voyage charters, and container rentals incidental to transport. It does not cover consulting income, dividends, interest, royalties, or regular business profits.

AGOA. The African Growth and Opportunity Act allows qualifying Ghanaian exports to enter the U.S. duty free. That is a trade preference, not a tax treaty. It affects customs duties, not income tax.

Treaty negotiations that never happened. Ghana has pursued trade agreements with the U.S., but a comprehensive tax treaty has never been finalized. Policy analysts point to limited incremental benefit and competing U.S. priorities as likely reasons.

How Double Taxation Is Actually Avoided

Without a treaty, relief comes from domestic law in each country. For U.S. citizens and residents, the primary tool is the Foreign Tax Credit.

The Foreign Tax Credit (FTC)

The United States taxes its citizens and residents on worldwide income. If you pay income tax to Ghana, the IRS allows you to claim a credit for that amount against your U.S. tax liability.

Here is how it works in practice:

Ama is a U.S. citizen living in Accra. She runs a consulting business and earns $50,000 in profit during 2025. She pays $10,000 in income tax to the Ghana Revenue Authority.

When she files her U.S. tax return, she reports the $50,000. Her preliminary U.S. tax liability is $10,000. She completes IRS Form 1116 and claims the $10,000 she already paid to Ghana as a foreign tax credit. Her U.S. tax liability drops to zero.

She pays $10,000 total in tax, all to Ghana. That is the same as if she earned the income in only one country.

The credit is dollar for dollar, but subject to limitations. It cannot exceed the U.S. tax attributable to foreign income. Professional guidance is often needed to calculate this correctly.

The Foreign Earned Income Exclusion (FEIE)

U.S. citizens who live abroad can also exclude a portion of their foreign earned income from U.S. taxation. For 2025, the exclusion amount is approximately $126,500 per person.

To qualify, you must meet either:

The physical presence test. You are physically present in a foreign country for at least 330 full days during any 12 consecutive months.

The bona fide residence test. You are a bona fide resident of a foreign country for an uninterrupted period that includes an entire tax year.

The FEIE applies only to earned income (wages, salaries, professional fees). It does not apply to dividends, interest, pensions, or capital gains. The key difference from the Foreign Tax Credit is that the FEIE reduces your U.S. taxable income, while the FTC directly reduces your U.S. tax liability dollar-for-dollar.

You cannot claim both the FEIE and the foreign tax credit on the same income. The choice depends on your tax rates in Ghana versus the U.S.

Corporate Structuring Considerations

If you own a Ghanaian company and are a U.S. citizen, the structure matters. A Ghana-registered company pays corporate income tax in Ghana at rates between 25% (standard) and 35% (mining, oil, and gas).

When the company pays dividends to you as a U.S. shareholder, Ghana imposes withholding tax. The current rate is 8% for non-residents.

You report those dividends on your U.S. return. You can claim a foreign tax credit for the Ghanaian withholding tax, but careful planning is required to avoid unexpected exposure. Note that complex U.S. anti-deferral rules, such as those for Controlled Foreign Corporations (CFC) and Global Intangible Low-Taxed Income (GILTI), may apply to U.S. shareholders of a Ghanaian company, potentially creating U.S. tax liability even if no income is distributed. Professional advice is essential for this structure.

How Ghana Taxes Individuals and Businesses

Understanding Ghana’s tax rules is essential for anyone earning income here.

Individual Income Tax in Ghana

Ghana taxes residents on their worldwide income. Non-residents are taxed only on Ghana-sourced income.

You are considered a resident if you:

• Spend 183 days or more in Ghana during any 12-month period, or
• Are present in Ghana for an average of at least 122 days per year over a three-year period

Individual income tax rates are progressive:

Note: These rates reflect the most recent published schedule from the Ghana Revenue Authority and are subject to change in annual budget revisions. Always verify current rates with an official source or qualified advisor.

Corporate Tax Rates

Standard corporate income tax is 25%. Special rates apply:

• Mining, oil, and gas: 35%
• Hotels: 22%
• Financial institutions: 30%
• Free zones enterprises: 0% for first 10 years, then 8%

Withholding Taxes

Ghana imposes withholding tax on payments to non-residents:

The 2026 Landscape: What’s Changing Between Ghana and the U.S.

Three developments in 2026 affect cross-border financial planning.

AGOA Renewal

The African Growth and Opportunity Act was renewed in early 2026. The renewal period varies by source — some report one year, others report three years pending Senate approval. Either way, Ghanaian exporters continue to have duty-free access to the U.S. market for qualifying products.

AGOA is not a tax treaty. It does not affect income tax. But it matters for Ghanaian businesses exporting to the U.S., and for U.S. investors sourcing goods from Ghana.

The Ghanaian government has explicitly positioned AGOA as fuel for its industrial “Reset” and “24-hour economy” agenda. The goal is to move from raw material exports to high-end manufacturing.

The Proposed U.S. Remittance Tax

A U.S. excise tax on remittances has been discussed in recent legislative proposals. If enacted in its proposed form, it would apply to cross-border transfers by non-U.S. citizens. Sources reporting on the draft legislation suggest a potential rate of 3.5% to 5%.

This proposal, if it becomes law, could affect remittance flows to Ghana. It would add a compliance layer for individuals sending money regularly between the two countries. This is currently a proposal, not an enacted law. Always verify the legislative status with official sources before making any financial decisions based on this information.

Talks of a Future Agreement

The Ghanaian government announced in early 2026 that negotiations for a bespoke trade agreement with the U.S. will begin this year. This does not change current tax rules. But it signals that the bilateral framework may evolve.

For now, no comprehensive tax treaty exists. Any future agreement would take years to negotiate and ratify.

Practical Scenarios: How the Rules Apply

Scenario 1: U.S. Citizen Living in Accra, Earning Consulting Income

Kwame is a U.S. citizen who moved to Accra in 2024. He works as an independent consultant for Ghanaian clients. He earns $80,000 in 2025 and pays GHS equivalent tax of approximately $15,000 to the Ghana Revenue Authority.

On his U.S. return, Kwame can either:

• Claim the Foreign Earned Income Exclusion (up to ~$126,500) and exclude all $80,000 from U.S. tax, or
• Claim the foreign tax credit for the $15,000 paid to Ghana

He should compare his Ghana tax rate to his U.S. rate. If his U.S. rate would be lower than his Ghana rate, the exclusion may be better. If his U.S. rate would be higher, the credit may be better.

A Note on Self-Employment Tax: Even if Kwame excludes his earned income from income tax using the FEIE, he may still owe U.S. self-employment tax (Social Security and Medicare) on that income, as there is no Totalization Agreement between the U.S. and Ghana to exempt him. This is a separate calculation that should not be overlooked.

Scenario 2: Ghanaian Business Owner Exporting to the U.S.

Esi owns a Ghana-registered company that exports processed shea butter to the U.S. under AGOA. Her company pays corporate tax in Ghana at 25% on its profits.

The company has no U.S. tax liability because it has no U.S. permanent establishment. Sales to U.S. customers are export sales from Ghana. No U.S. income tax applies.

If Esi takes dividends from the company as a Ghana resident, Ghana taxes those dividends at 8% withholding. She reports them on her Ghana individual tax return, not on a U.S. return.

Scenario 3: Dual Citizen Receiving U.S. Dividends

Yaw is a dual U.S.-Ghana citizen living in Kumasi. He owns shares in a U.S. company and receives $10,000 in dividends annually.

The U.S. imposes 30% withholding tax on dividends paid to foreign persons. The company withholds $3,000 and sends it to the IRS. Yaw receives $7,000.

Yaw reports the $10,000 dividend on his U.S. return. He also reports the $10,000 on his Ghana return as a resident. He can claim a foreign tax credit in Ghana for the $3,000 U.S. tax paid, subject to Ghana’s credit rules.

If you need personalized legal assistance with cross-border tax planning between Ghana and the U.S., consider reaching out to a qualified Ghanaian lawyer with international tax experience. Use the form below to get started:

What Happens If You Ignore Cross-Border Tax Rules

Non-compliance carries serious consequences in both countries.

FBAR Requirements

U.S. persons with foreign financial accounts exceeding $10,000 in aggregate value during any calendar year must file FinCEN Form 114 (FBAR). Penalties for non-willful failure can reach $10,000 per violation. Willful violations carry penalties up to the greater of $100,000 or 50% of the account balance.

FATCA Exposure

The Foreign Account Tax Compliance Act requires foreign financial institutions to report accounts held by U.S. persons. Ghana has not signed an Intergovernmental Agreement with the U.S., but Ghanaian banks may still report directly to the IRS. Unreported foreign accounts trigger substantial penalties.

Ghana Tax Penalties

The Ghana Revenue Authority imposes penalties for late filing and underpayment. Interest accrues on unpaid tax. In serious cases, criminal prosecution is possible.

Late Filing Risks

If you have unfiled U.S. returns, the IRS offers streamlined filing procedures for certain non-willful taxpayers. But the window for these programs is not guaranteed indefinitely.

When You Should Speak to a Cross-Border Tax Lawyer

Not every situation requires a lawyer. But you should consider professional advice if:

• You own property or a business in both countries
• You are a dual citizen with complex investment income
• You make large or frequent remittance transfers
• You have unfiled returns in either country
• You are structuring a new business entity
• You are considering renouncing citizenship or residency

A qualified lawyer can help you navigate the interaction between U.S. and Ghanaian tax rules, structure entities efficiently, and ensure compliance with reporting requirements in both jurisdictions.

Bottom Line: No Treaty, But Clear Rules Exist

There is no comprehensive double taxation treaty between Ghana and the United States. That is the official position, confirmed by both governments.

But double taxation is not automatic. The U.S. Foreign Tax Credit and Foreign Earned Income Exclusion provide relief. Ghana allows foreign tax credits under its domestic law. The 2001 shipping agreement covers a narrow category of transport income.

2026 adds complexity. AGOA renewal affects exporters. A proposed U.S. remittance tax may change cross-border transfers. Ghana has signaled interest in future negotiations, but no treaty exists today.

If your situation involves significant cross-border income, assets in both countries, or business operations, professional advice is strongly recommended.

Sources

• U.S. Commercial Service: Ghana Trade Agreements
• IRS: Foreign Tax Credit
• IRS: Foreign Earned Income Exclusion
• Ghana Revenue Authority Official Site
• USTR: African Growth and Opportunity Act
• Ghana Broadcasting Corporation: AGOA Renewal Coverage (February 2026)

Compliance note: All money transfer services must be licensed by the Bank of Ghana.