Get ready, lotto fans and operators in Ghana! The Ghana Revenue Authority (GRA) has announced that from January 2024, you’ll be paying a 10% withholding tax on all your gross lottery winnings. This move isn’t exactly out of the blue. Remember in August when the GRA put a similar tax on all betting and lottery wins? Yep, it’s all part of the same plan.
This tax shake-up is thanks to the government tweaking the Tax Act, which now includes a tax on winnings from sports betting and the lottery. The Commissioner General of the GRA released a statement giving us the lowdown. Even though this change kicked off earlier, the National Lottery Authority (NLA) and Private Lotto Operators (PLOs) got a six-month breather to get their ducks in a row. But that grace period wrapped up in December.
The Official Word from the GRA
Here’s the scoop straight from the horse’s mouth: “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,” said the GRA. And yep, the NLA and PLOs have been getting ready for this change during their six-month extension.
This tax is kicking in this January 2024, and the GRA is reminding everyone involved – from players to operators and tax consultants – to take note. Operators, especially, better toe the line because not playing ball with the tax law is a no-no and comes with penalties, as per Section 78 of the Revenue Administration Act, 2016 (Act 915).
Betting’s Big Boom in Ghana
Over the last decade, Ghana’s seen a massive surge in lottery and betting companies setting up shop. Sports betting, in particular, has been a hot topic among Ghanaians. It’s a bit of a love-hate relationship: many are worried about its addictive nature, especially among the youth, while others reckon it’s a legal and legit way to make some cash, as long as no rules are broken.
As 2024 steps in, it looks like lotto and betting enthusiasts will have to factor in that extra 10% tax on their winnings. It’s a new twist in Ghana’s ever-evolving gambling saga!
