Beginning August 15, 2023, the Ghana Revenue Authority (GRA) will enforce a 10% withholding tax on total gaming winnings.
The Authority explained that the fee will be levied on earnings gained after each win and that the previous 15% Value Added Tax (VAT) rate on each bet will not be charged.
The new directive, it explained is associated with an amendment to the Income Tax Act 2023 (No.2), Act 1094.
Addressing the media, Commissioner of the Domestic Tax Revenue Division at GRA, Edward Gyamerah, stated that non-compliant gaming firms could lose licenses due to the policy, hence urged them to adhere to the directive.
“Come August 15, we expect that when you are making the payments, you will withhold 10 percent 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we had with you and with the support of the gaming commission, you can be assured that your licenses will be withdrawn,” the Commissioner for the Domestic Tax Revenue Division at GRA, Edward cautioned.
As part of amendments to the Income Tax Act, the GRA revealed the implementation of new excise duties on beverages.
Head of the Compliance Excise Unit at GRA, Nelson Bright Atsu, indicated that fruit juices, grapes, and unfermented vegetable juices without added spirits or sugar will now carry a 20% excise duty.
Additionally, the excise duty on other beverages will rise from 17.5% to 20%.
Mr. Atsu further elaborated that beverage companies prioritizing local raw materials could qualify for excise duty payment rebates.
These adjustments in the form of new withholding tax on gaming winnings and revised excise duties on beverages are integral to GRA’s strategies for enhancing revenue mobilization in Ghana.