GRA to implement 10% tax on lotto winnings

The Ghana Revenue Authority (GRA) has served notice to lotto patrons and operators that a 10% withholding on all gross winnings will take effect from January 2024. It will be recalled that, in August, GRA officially implemented a 10% withholding tax on all betting, games and lottery wins.

This followed the government’s decision to amend the Tax Act, therefore, introducing withholding tax on winnings from sports betting and lottery.

A statement from the Commissioner General of the GRA said the National Lottery Authority (NLA) and Private Lotto Operators (PLOs) were granted a six-month extension despite the 10% withholding tax being introduced, with that extension set to come to an end in December.

“The Ghana Revenue Authority wishes to inform the general public especially, patrons of Lotto that, the Income Tax (Amendment) Act, 2023 (Act 1094), introduced a 10% Withholding Tax on the Gross Winnings from all Lottery i.e. Lotto, Betting, Gaming and Other Games of Chance,”

“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.” – the GRA said.

The Revenue Authority added:

“This extension expires in December 2023 and therefore the NLA and PLOs are required to commence the implementation of the Withholding Tax on Lotto Gross Winnings effective January 2024.”

“The general public, particularly Patrons /Players Punters, Operators and Tax Consultants must take note of this directive. 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).”

Meanwhile, the lottery and betting industries in Ghana have seen tremendous growth in the last decade, leading to many betting companies setting up shop in the country.

In recent years, sports betting has often divided opinion among Ghanaians, with some quarters highlighting its negative effects on the youth, including addiction.

Others also believe betting is legal and a legitimate way of making money, and therefore cannot be described as a bad practice when no laws are broken.

Source: pulse.com.gh

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Samuel

I am a journalist specializing in gambling in Africa and around the world. I am particularly interested in stories about games and casinos.

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Samuel

I am a journalist specializing in gambling in Africa and around the world. I am particularly interested in stories about games and casinos.