The Ghana Revenue Authority (GRA) has begun deducting a 10% withholding tax on all gross gains from all games of chance, including gaming, betting, and lottery.
Edward Gyambrah, the commissioner of the Domestic Tax Revenue Division (DTRD), made public the specified amount to be deducted at a media event in Accra. In his speech, he stated that the tax deduction applies to the winnings of private lotteries, casinos, sportsbooks, betting routes, marketing promotions, remote game operators, and other games of chance.
The GRA is looking forward to generating about GH1.2 billion in income from lottery operations at the end of the year, says the commissioner.
The commissioner told licensed operators, “From August 15, we expect that when you make 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the interactions we had with you and the gaming commission’s support, you can be assured that your licenses will be withdrawn.”
In addition, payment of a 20% Tax on gross gaming Revenue (GGR) lottery operations is required from all lottery operators when submitting their monthly reports.
Thomas T.K Agorsor, the Chairman of GRA, said the authority had created a Revenue Monitoring System (RMS) to verify the total revenue expected to be paid by lottery operators.
The Chairman further stated that to perform every needed check and assessment, the GRA will have physical access to lottery operator systems or infrastructure.
Also, he reminded lottery operators of the need to update their software. The latest updates will make known stake amounts, potential winnings before tax, tax percentage, tax withheld, and potential payouts after tax.