GRA To Implement 10% Withholding Tax On Betting & Lottery Winnings August 15

The Ghana Revenue Authority (GRA) has announced that it will begin implementing a 10% withholding tax on sports betting and lotteries from August 15, 2023.

This forms part of the government’s efforts to expand the tax base and increase domestic revenue.

It first came to light when Parliament passed three new bills in March 2023.

They were the Excise Duty Amendment Bill 2022, the Growth and Sustainability Levy Bill 2022, and the Income Tax Amendment Bill 2022.

GRA explained that the 10% tax would be charged on profits accrued after each win and that the existing 15% Value Added Tax (VAT) rate on each stake would no longer be charged.

Speaking at a media engagement session, the Commissioner for the Domestic Tax Revenue Division at the GRA, Edward Gyamerah, said that gaming companies that fail to comply with the new policy will face sanctions, including the withdrawal of their licenses.

“Come August 15, we expect that when you are making the payments, you will withhold 10 per cent to the Ghana Revenue Authority (GRA). 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we had with you and with the support of the Gaming Commission, you can be assured that your licenses will be withdrawn,” Mr Gyamerah cautioned gaming companies.

The GRA said that the new policy is in line with an amendment to the Income Tax Act 2023 (No.2), Act 1094.