The Ghana Revenue Authority (GRA) has issued a public notice informing the public, especially lotto patrons and operators, about the forthcoming implementation of a 10% withholding tax on all lotto winnings.
This tax will apply to all forms of lotteries, including lotto, betting, gaming, and other games of chance. The implementation of this withholding tax is in accordance with the Income Tax (Amendment) Act, 2023 (Act 1094).
The GRA stated they granted a six-month extension to the National Lottery Authority (NLA) and Private Lotto Operators (PLOS) to prepare for and implement the tax.
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This extension will expire at the end of December 2023. Therefore, starting from January 1, 2024, the NLA and PLOs are mandated to commence the implementation of the 10% withholding tax on Lotto Gross Winnings.
It is important to note that compliance with this tax law is compulsory, and failure to comply will be considered an offence under Section 78 of the Revenue Administration Act, 2016 (Act 915).
The GRA urges patrons, players, punters, operators, and tax consultants to take note of this announcement and to ensure they comply with the new tax regulations.
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In August 2023, the GRA began implementing a 10% withholding tax on all gross gaming winnings.
This tax is charged on profits earned after each win and replaces the existing 15% Value Added Tax (VAT) rate on each stake.
Edward Gyamerah, the Commissioner for the Domestic Tax Revenue Division at the GRA, has clarified that gaming companies that fail to comply with the new policy will face sanctions, including the possible withdrawal of their licenses.
