Set up one-stop shop to handle expatriates

Regulatory bodies which handle aspects of expatriate permits, including work and resident permits, taxation and social security will have to harmonise their operations to create a one-stop shop to expedite the processing of documents for expatriates.

This is because the one-stop shop would create the ease of compliance and eliminate cumbersome bureaucratic processes that frustrate expatriates who either on assignment in Ghana or are dependents of principal expatriates.

Currently, while the Ghana Investment Promotion Centre (GIPC) grants some expatriates quotas for investments in the country, it is possible for other sector specific regulatory bodies or the Ghana Immigration Service to decline recognition because they had not received the approval of the regulator(s) of the sector(s) their businesses fall under.

Given that expatriates bring in revenue by paying taxes and also serving as a source of skills transfer, it has become increasingly important for the country to streamline its laws and make its implementation hustle free in terms of expatriate compliance.

The Pensions Act also mandates companies to deduct and pay the social security contributions of their employees, irrespective of their nationalities.

An Associate Director at pwc, Mr Francis Adiasani, who gave a presentation on “Mobility in Ghana” at the maiden Expatriate Mobility Forum in Accra, said authorities requesting for separate information for tax, social security and immigration for example, was cumbersome and required that the various authorities “talk to themselves to get a one-stop shop implemented.”

He highlighted another challenge where obtaining a Tax Identification Number (TIN) delayed, although the same information the Ghana Revenue Authority (GRA) required was the same as other relevant regulatory bodies ask for.

According to pwc, the country should consider issuing a visa class that also permits people to work in the country. “This will bring in a lot of revenue to the country when these issues are resolved properly,” Mr Adiasani said.

 For regulators

For the regulators, Mr Adiasani, who has been working in his capacity for the past 20 years, said the expatriates either failed to notify them in time or failed entirely to provide the relevant information, particularly when it came to tax clearance certificates or refunds.

The Director at pwc advised employers and assignors to get support where necessary, stressing on the need for proper talent management, repatriation and exit arrangements.

Explanations

Representatives of some of the regulatory bodies offered explanations and pledged to work closely together to implement other best practices, such as a one-stop shop for processing permits and taxation.

“We have identified some of these challenges and we are already reviewing our immigration laws to make them friendlier to expatriates. This would support the state’s vision to make the country a gateway to Africa,” the Head of Public Affairs of Ghana Immigration, Comptroller Francis Palmdeti, explained.

They, however, appealed to expatriates and their employers to put in applications months ahead of either their claims or refunds.

“For instance, expatriates can declare that their income at their home countries is GH¢3,000. When you convert this into dollars, it comes to less than $1,000. Straightaway this will be a subject of investigation by the GRA and this can delay tax refunds or clearance certificates,” a representative from the GRA explained.

When all information and documentation is provided, the GRA said it took up to 24 hours to issue the clearance certificate.

 Mobility forum

A partner at pwc, Mr George Kwatia, explained that the forum was informed by the significant increase in expatriate into the country spurred by mining, oil and gas, telecommunications, port and shipments as well as financial services, among other sectors.

Such mobility comes with its own advantages and challenges which needed to be understood so the right policies are put in place to rake in the benefits. Mr Kwatia said the forum was the first of its kind and would be sustained.