10% Withholding Tax On Lotto Winnings Takes Effect
The Ghana Revenue Authority (GRA) has rolled out the 10% Withholding Tax on gross lotto winnings months after the implementation of the Income Tax (Amendment) Act, 2023 (Act 1094).
It took effect on January 1, 2024.
In a press statement in late December 2023, the GRA issued a notice saying, “Although the implementation has commenced, the National Lottery Authority (NLA) and Private Lotto Operators (PLOs) were granted a six (6) month extension to enable the NLA/PLOs to prepare and implement the 10% Withholding Tax on Lotto Gross Winnings.”
After the expiration of the extension in December, the GRA called on patrons, players, punters, operators and Tax Consultants to take note.
It cautioned, “Operators are also reminded that failure to comply with the Tax law is an offence and attracts sanctions as prescribed in Section 78 of the Revenue Administration Act, 2016, (Act 915).”
The deduction of a 10% withholding tax at the point of payout from winnings in lotteries, sports betting, and games of chance is governed by the Income Tax Amendment Act 2023, Act 1094. This tax was one of three approved by Parliament on March 31.
As per the provisions of the Act, betting companies operating in the country will face a 20% tax deduction on their gains.
This tax came into effect in August 2023.
