Government abolishes withholding tax on lottery winnings
The government has officially abolished the 10% withholding tax on lottery winnings.
This move applies to all forms of games of chance, including gaming, betting, lotto, and similar activities.
The decision is expected to benefit millions of lottery players across the country.
According to a communiqué issued by the Ghana Revenue Authority (GRA), the change took effect on April 2, 2025, allowing lottery winners to receive their full prize amounts without any tax deductions at the point of payout.
On March 26, 2025, Parliament passed the Income Tax (Amendment) Bill, 2025, which abolished the 10% withholding tax on lottery winnings, popularly referred to as the “Betting Tax”, along with several other taxes. The move fulfills a key campaign promise made by the National Democratic Congress (NDC) ahead of the 2024 elections.
In a statement shared on X and sighted by GhanaWeb Business, the GRA confirmed the scrapping of the tax following President Mahama’s assent to the bill.
The statement further clarified that any players charged withholding tax on their winnings on or after April 2, 2025, are entitled to a refund from the lottery operator.
However, the government also noted that while the withholding tax has been removed, winnings must still be reported as part of annual income tax filings.
Based on the size of the winnings, they may be subject to standard income tax rates.
See the post and statement below:
SP/MA
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