The GRA has announced that a tax regime that swaps 12% VAT on every stake of a bet or a lottery for a 10% withholding tax on winnings will start on August 15. The new tax system for bets and lottery is part of revisions under the amended Income Tax Act 2023 (No.2), Act 1094.
From August 15, 2023, the government will begin taking 10% of every winning from sports and other bettings and lottery as part of a revision of the current tax regime. The Ghana Revenue Authority (GRA) the state agency that will be mandated to charge the taxes has explained that the new 10% withholding tax will replace the existing 15% Value Added Tax (VAT) on each stake.
The 10% tax will be charged on profits an individual makes after each win.
According to reports, Edward Gyamerah of GRA’s domestic tax revenue division has explained that it is important for gaming companies to comply with the new tax system to avoid sanctions.
“As you have been appointed as withholding agents, the obligation is on you to withhold. If you fail to do that…you can be assured that your licenses will be withdrawn,” he warned.
