The Ghana Revenue Authority (GRA) has officially communicated that, starting from January 1, 2023, the National Lottery Authority (NLA), Private Lotto Operators (PLOs), and other operators involved in games of chance will initiate the complete deduction of a 10% withholding tax on all gross winnings.

This directive comes into effect following the conclusion of a six-month grace period granted to the NLA and PLOs for comprehensive preparations to implement the provisions of the Income Tax (Amendment) Act, 2023 (Act 1094).

In a statement issued, the GRA underscored the significance of compliance with this new tax regulation. It explicitly warned that any failure on the part of these operators to adhere to the specified deduction would constitute an offense against the tax laws of Ghana.

The GRA further highlighted that such offenses would be subject to sanctions in accordance with the provisions outlined in the Revenue Administration Act, 2016 (Act 915).

This measure aligns with the broader strategy of the GRA to streamline and enhance the taxation framework related to gaming and lottery activities within the country.

The withholding tax on gross winnings is seen as a crucial component in ensuring equitable tax contributions from entities engaged in the lucrative gaming and lottery sectors.

The GRA expects strict adherence to these guidelines, emphasizing the legal consequences that may be imposed on those found in violation of the stipulated tax regulations.

Read the full statement by GRA below: