New tax laws introduced for gaming and lottery operations

To widen the domestic tax net, some amendments have been made to the Income Tax

Act 2023, Act 1094 with implications for the gaming industry.

From the 15th of August, a 10% withholding tax will be exacted from gross winnings from all betting, gaming, lotto, and other games of chance.

This means bettors will now pay a withholding tax of 10% of the profits accrued on wins, and this replaces the existing 15% VAT that is charged.

In addition to this, operators of gaming will pay a 20% tax on Gross Gaming Revenue to replace Corporate Income Tax.

Ahead of implementation, the Ghana Revenue Authority has engaged news editors to

help them understand the rationale behind the policy.

According to the Commissioner for the Domestic Tax Revenue Division of Ghana

Revenue Authority, Edward Gyambrah, a sum of 1.2 Billion Ghana Cedis is expected to be collected during the initial stages of implementation.

He warned that gaming enterprises that do not comply with the new rules will be subject to penalties including having their licenses revoked.