The Income Tax (Amendment) Act, 2023 (Act 1094) introduced this Withholding Tax, which has been in effect since its implementation.

However, the National Lottery Authority (NLA) and Private Lotto Operators (PLOS) were granted a six-month extension to prepare and implement the tax. This extension is set to expire at the end of December 2023.

Therefore, the GRA has mandated the NLA and PLOs to commence the implementation of the 10% Withholding Tax on Lotto Gross Winnings from January 1, 2024.

The GRA emphasized that compliance with the tax law is mandatory, and failure to do so is considered an offence under Section 78 of the Revenue Administration Act, 2016 (Act 915). Sanctions will be applied to operators who do not adhere to the stipulated 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 gamingsupport@gra.gov.gh.

Background

The Ghana Revenue Authority (GRA) began implementing a 10% withholding tax on all gross gaming winnings on August 15, 2023. 

The tax is charged on profits earned after each win, replacing the existing 15% Value Added Tax (VAT) rate on each stake. The GRA explained that 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.