TKay Legal Blog

  #TheMSMESeries  When it comes to taxes, most business owners just want to survive without losing everything they’ve worked for. But in trying to save money, many people unknowingly walk a fine line and sometimes, cross it. That’s why today, we’re talking about something crucial for every entrepreneur. The difference between tax avoidance and tax evasion . Two terms that sound similar, but carry very different meanings and consequences. So, what exactly is tax avoidance? Tax avoidance is when you legally reduce your tax burden by arranging your business affairs in a smart, efficient way. You’re not breaking the law, you are using it to your advantage. And yes, that is   allowed. Imagine this: Kofi registers his company in an area with special tax incentives. Adzo delays an income-generating activity until the next tax year for planning purposes. All of these are forms of tax planning and they fall under tax avoidance. It’s completely legitimate. It’s intent...

  Business Forms + Tax Planning   In Ghana, many businesses begin with a good idea, a catchy name and the determination to make it work. But somewhere along the way, an important question is often overlooked: “What kind of business have I actually set up and what does that mean for how I’m taxed?” If you’ve never paused to think about that, you’re not alone. And that’s exactly why we’re having this conversation. But before we even get into taxes (which we will in the next few articles), let’s talk about tax planning. What is Tax Planning, and Why Should You Care? Tax planning is simply organizing your business in a way that helps you legally reduce how much tax you pay. It’s about making smart decisions with what the law already allows, so you don’t end up paying more than you need to. Let’s make it simple: If Akua runs a bakery as a one-woman business, she might be paying tax as an individual. But if she grows and registers as a company or brings in a partner,...

  Every thriving economy has its silent architects. The businesses that may never make headlines but keep entire families afloat, create jobs and build communities. In Ghana, we’ve long called them “small businesses,” but that name has always felt incomplete. Because let’s be honest, what’s “small” about carrying the weight of the economy on your back? Ghana has introduced a new Classification of Micro, Small and Medium Enterprises (MSME) Regulations, 2023 (L.I. 2470) and it’s a game changer. So, how does it work? The regulation breaks businesses down into four categories- Micro , Small , Medium and Large , based on three simple criteria: 1.      How many permanent employees you have 2.      How much money you make in a year (turnover) 3.      The value of your fixed assets So, if you have 1 to 5 employees , and your business brings in an amount less or equal to   GHS 150,000 , you’re officially a Mic...

  In Ghana today, hustle is everywhere. From the young woman selling handmade wigs on Instagram, to the team building a startup from a small container, to Instagram shops, delivery riders to freelance designers, Momo merchants to event planners, we are building dreams every single day in Ghana. But for many of us, there’s a major gap. We know how to hustle but we don’t always know how to protect it.  While we’re busy securing the bag, there’s one thing most business owners forget to secure: THE LAW And that’s how too many people end up burnt, scammed, sued or stuck. The Law Behind the Hustle. This series is here to make sure your grind doesn’t become your downfall. It’s law for the everyday Ghanaian business (MSMEs) owners, broken down clearly, honestly and in language you don’t need a law degree to understand. Here are some of the topics to expect:   • What makes a contract binding? • Business Forms and Taxation of Small businesses. • “What I ordered ...