The Ghana Revenue Authority (GRA) has issued a public notice regarding the initiation of a 10% withholding tax on gross winnings from lotteries, including lotto, betting, gaming, and other games of chance.
The Income Tax (Amendment) Act, 2023 (Act 1094) introduced this withholding tax, which has been effective since its implementation.
However, the National Lottery Authority (NLA) and Private Lotto Operators (PLOS) were granted a six-month extension, expiring at the end of December 2023, to prepare for and implement the tax.
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Consequently, the GRA has directed the NLA and PLOs to commence the implementation of the 10% withholding tax on Lotto Gross Winnings from January 1, 2024.
Non-compliance is considered an offense under Section 78 of the Revenue Administration Act, 2016 (Act 915), and sanctions will be imposed on operators failing to adhere to the specified tax regulations.
Patrons, players, punters, operators, and tax consultants are urged to take note of this directive.
The GRA has provided contact details for assistance: patrons/players/punters can reach GRA toll-free on 0800-100-110 or via WhatsApp on 055 299 0000 / 020 063 1664. Operators can contact the GRA Gaming Support Team at [email protected].
In the background, the GRA initiated the implementation of a 10% withholding tax on all gross gaming winnings on August 15, 2023. This tax is applied to profits earned after each win, replacing the existing 15% Value Added Tax (VAT) rate on each stake.
The new policy aligns with an amendment to the Income Tax Act 2023 (No.2), Act 1094. The Commissioner for the Domestic Tax Revenue Division at the GRA, Edward Gyamerah, clarified that gaming companies failing to comply with the new policy would face sanctions, including the withdrawal of their licenses.
The tax has faced criticism from punters since its implementation.
