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The Ghana Revenue Authority (GRA) has officially announced the commencement of a 10% withholding tax on gross winnings from all lotteries, including lotto, betting, gaming, and similar games of chance, effective from January 1, 2024.
In a recent public notice, the GRA highlighted the implementation of the Withholding Tax introduced under the Income Tax (Amendment) Act, 2023 (Act 1094). While this tax has been in effect since its introduction, the National Lottery Authority (NLA) and Private Lotto Operators (PLOS) were granted a six-month extension to prepare and enforce the tax, set to expire at the end of December 2023.
Consequently, the GRA has mandated the NLA and PLOs to initiate the 10% Withholding Tax on Lotto Gross Winnings from January 1, 2024. Emphasizing the mandatory compliance, the GRA outlined that failure to adhere to the tax regulations constitutes an offense under Section 78 of the Revenue Administration Act, 2016 (Act 915), and operators disregarding these regulations will face sanctions.
The GRA’s directive urged patrons, players, punters, operators, and tax consultants to take note of this implementation.
Background:
The GRA initially commenced the implementation of a 10% withholding tax on all gross gaming winnings from August 15, 2023. This tax replaces the existing 15% Value Added Tax (VAT) rate on each stake, aligning with an amendment to the Income Tax Act 2023 (No.2), Act 1094.
Edward Gyamerah, the Commissioner for the Domestic Tax Revenue Division at the GRA, clarified that gaming companies failing to comply with the new policy would face penalties, potentially leading to the revocation of their licenses.
