GRA Announces 10% Tax on Lotto Winnings Starting January 1, 2024

The Ghana Revenue Authority (GRA) has officially informed the public, especially lotto patrons and operators, about the initiation of a 10% withholding tax on the gross winnings from all lotteries, including lotto, betting, gaming, and other games of chance. The implementation is in accordance with the Income Tax (Amendment) Act, 2023 (Act 1094), effective since its enactment.

While the National Lottery Authority (NLA) and Private Lotto Operators (PLOS) were granted a six-month extension for preparation and implementation, this extension is set to expire at the end of December 2023. Consequently, the GRA has directed the NLA and PLOs to start implementing the 10% Withholding Tax on Lotto Gross Winnings from January 1, 2024.

Compliance with the tax law is mandatory, and operators failing to adhere to the stipulated tax regulations will face sanctions as outlined in Section 78 of the Revenue Administration Act, 2016 (Act 915).

The GRA urges patrons, players, punters, operators, and tax consultants to take note of this directive. For assistance, patrons/players/punters can contact GRA toll-free at 0800-100-110 or via WhatsApp at 055 299 0000 / 020 063 1664. Operators can reach the GRA Gaming Support Team at gamingsupport@gra.gov.gh.

Background:

The implementation of a 10% withholding tax on all gross gaming winnings began on August 15, 2023. This tax, applied to profits earned after each win, replaces the existing 15% Value Added Tax (VAT) rate on each stake. The GRA clarified that the new policy aligns with the Income Tax Act 2023 (No.2), Act 1094. Gaming companies failing to comply with the policy will face sanctions, including license withdrawal. The tax has faced criticism from punters since its implementation.

GRA Announces 10% Tax on Lotto Winnings Starting January 1, 2024