Ghana considering tax agreement with Guyana – Petroleum Commission CEO

…says will raise matter at highest level of Ghanian Govt

In light of the creation of a Ghana/Guyana Chamber of Commerce and the interest of Ghanian companies in investing here, the head of Ghana’s Petroleum Commission, Egbert Faibille Jnr, has said that a taxation agreement between the two countries would be considered.
On Wednesday, a round table discussion was facilitated between Guyanese and Ghanian oil officials and private sector. During the discussions, a question was asked whether a tax treaty was being considered to ensure Ghanian and Guyanese businesses are not double taxed when investing in their respective countries.

It is a question that the Chief Executive Officer (CEO) of Ghana’s Petroleum Commission, Egbert Faibille Jnr, considers important. Faibille committed to raising the matter at the highest levels of the Ghanian Government.
“I think that it’s a very important question. Taxation, as we all know, is very important in the business and the international (spheres). Fortunately for both countries, we signed technical cooperation agreements. And I know that the Vice President of Ghana has been keeping an eye on our engagements with Guyana. I will escalate this and see to it that immediately something like this is done, because it makes a lot of sense to at least be talking about double taxation arrangements,” Faibille said.
Faibille was also hopeful that a joint agreement that would include taxation could be signed between the two countries at some point in the future. The CEO noted that Ghana remains in regular contact with Guyana’s Ministry of Natural Resources.
“Now, what does this portend for indigenous Ghanian businesses? If you are already working in Ghana for Tullow strategic alliance arrangements, you can easily be taken from Ghana by Tullow to go and partner with an indigenous company in Guyana, and do the same work for Tullow in Guyana. So, this double taxation arrangement really makes a lot of sense…
“Fortunately, we also work with the Ministry of Natural Resources in Guyana, and we are in contact every now and then. So, hopefully, I’m sure at our level we can also take it up so that we can do possibly a joint paper between both Governments,” Faibille said.
Just a few months ago, the first Ghanaian Chamber of Commerce was commissioned in Guyana. The organization will allow the two countries to connect businesses and foster investment which would drive further economic growth locally.
That same month, a Ghanian delegation led by Gabby Otchere-Darko, Chairman of the Ghana Chamber of Commerce in Guyana, alongside President of the Ghana Chamber of Commerce in Ghana, Clement Osei Amoako, and Director of the Ghana Chamber of Commerce in Guyana, Loveland White, along with other Private Sector officials, met with their Guyanese counterparts.
According to a subsequent statement from the Private Sector Commission (PSC), the discussions centered around the extensive opportunities present in Guyana, and the potential for trade. It was also acknowledged that Ghana, which is an oil-producing country with the potential of over 170,000 barrels of oil per day, could offer valuable expertise and advice to support Guyana in the oil and gas sector.
And in 2019, Guyana and Ghana had signed a two-year Memorandum of Understanding for trading relations and information sharing between the two states. Back in December 2021, Ghanian Vice President Dr Mahamudu Bawumia visited Guyana, during which several bilateral cooperation agreements were signed to further improve relations between the two countries.
During that visit, Dr Bawumia and delegation engaged in high-level bilateral discussions at both the Government and Private Sector levels, including engagements with President Irfaan Ali, Prime Minister Mark Phillips, Vice President Bharrat Jagdeo, and other Ministers of Government.
Vice President Bawumia also met with members of the Ghanaian diaspora, and paid a visit to the University of Guyana. Vice President Bawumia’s visit follows on the heels of the three-day visit VP Jagdeo paid to Ghana in October that year, wherein he held talks with his Ghanian counterpart. Following those discussions, he had announced that Ghanian experts would be reviewing Guyana’s draft local content legislation.
During Jagdeo’s meeting with the Ghanian Vice President, they had also spoken about the initiatives that Ghana implemented to further its industrial agenda and develop its non-oil economy.