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.
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we had with you and with the support of the Gaming Commission, you can be assured that your licenses will be withdrawn,” Mr Gyamerah cautioned gaming companies.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.
Please note effective 15th August, all winnings in Gaming, Betting, Lottery and Games of Chance attract 10% Withholding Tax.— GRA (@GhanaRevenue) August 8, 2023
This does not include the amount invested in staking or playing the games. #WithholdingTax #BettingTax #LotteryTax #10PercentTax #TaxOnBetting… pic.twitter.com/zczhELiRqz