Withhold 10% of all lotto, bet winnings or have your licence revoked – GRA orders gaming companies

Starting from August 15, 2023, the Ghana Revenue Authority (GRA) is set to initiate a 10% withholding tax on all gross gaming winnings, according to an official announcement.

The new tax will be applied to profits gained after each win, while the existing 15% Value Added Tax (VAT) on stakes will be discontinued.
This alteration is in accordance with an amendment to the Income Tax Act 2023 (No.2), specifically Act 1094.

During a media interaction, Mr Edward Gyamerah, the Commissioner for the Domestic Tax Revenue Division at GRA, emphasised that gaming companies failing to comply with this policy will encounter penalties, including the revocation of their licences.

Mr Gyamerah directed: “As of August 15, it is expected that you will remit 10 per cent to the Ghana Revenue Authority (GRA) during payments. Since you have been designated as withholding agents, the responsibility lies with you to carry out the withholding”.

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He warned: “Failure to do so, after our discussions with you and in conjunction with the Gaming Commission, will result in the assured withdrawal of your licences”.

Furthermore, as part of the Income Tax Act amendment, the GRA introduced new excise duties on beverages.

Mr Nelson Bright Atsu, Head of the Compliance Excise Unit at GRA, detailed that fruit juices, grapes, and unfermented vegetable juices without added spirits or sugar will now incur a 20% excise duty.

Additionally, the excise duty for other beverages has been raised from 17.5% to 20%.

Mr. Atsu also indicated that beverage companies utilising a higher proportion of locally-sourced raw materials will qualify for excise duty payment rebates.

These changes in the form of a new withholding tax on gaming winnings and revised excise duties on beverages align with the GRA’s overarching objective to enhance revenue generation in Ghana.

Source: classfmonline.com