10% Deduction On Betting Wins Effective Next Week

The Ghana Revenue Authority (GRA) has reminded Ghanaians about the implementation of the 10% Withholding Tax on winnings on all betting and lotteries.

The tax takes effect on August 15.

This was announced by the Commissioner for the Domestic Tax Revenue Division at GRA, Edward Gyamerah during a stakeholder engagement.

“Come August 15, we expect that when you are making the payments, you will withhold 10 per cent to the Ghana Revenue Authority (GRA).”

He warned that agents who fail to deduct the tax will have their licences withdrawn.

“As you have been appointed as withholding agents, the obligation is on you to withhold. If you fail to do that, with the interactions we had with you and with the support of the gaming commission, you can be assured that your licenses will be withdrawn.”

The 10% withholding tax will be deducted from winnings on lotteries, sports betting, and games of chance at the point of payout.

Also, betting companies operating in the country will be deducted a 20% tax on gains.

The tax which falls under the Income Tax Amendment Act 2023, Act 1094 is one of the three taxes that were approved on March 31 by Parliament.

During their passage, the government said they formed part of the conditions to satisfy the International Monetary Fund (IMF) for a bailout.

The government argues that at 13%, Ghana has the lowest tax-to-GDP ratio in West Africa and therefore plans to raise it to 20%.