From August 15: Ghana Implements 10% Tax on Bets and Lottery Payouts

In a significant change to the current tax framework, the Ghana Revenue Authority (GRA) has announced that a revamped tax system for bets, lotteries, and sports winnings will come into effect on August 15, 2023.

Under the new arrangement, individuals who win bets, participate in lotteries, or secure victories in sports betting will face a 10% withholding tax on their winnings.

This alteration is part of the revisions outlined in the amended Income Tax Act 2023 (No.2), Act 1094. The new tax system marks a departure from the previous 12% Value Added Tax (VAT) applied to each stake in a bet or lottery. Instead, a 10% withholding tax will be collected on the profits an individual garners following a win.

Edward Gyamerah, a representative from the GRA’s domestic tax revenue division, stressed the importance of compliance with the revised tax structure. Gyamerah cautioned gaming companies, which will serve as withholding agents, to fulfill their obligations to avoid potential repercussions.

“If you fail to do that…you can be assured that your licenses will be withdrawn,” Gyamerah warned, emphasizing the gravity of adherence to the new rules.

The adjustment in the tax regime is expected to impact both players and gaming companies operating within Ghana’s betting and lottery landscape. The decision aims to streamline the taxation process and contribute to the government’s revenue collection efforts.

The transition from the previous VAT model to a withholding tax mechanism seeks to simplify taxation procedures and align them with current fiscal objectives.