National Lottery Authority Exempted From 10% Tax On Lottery Wins

National Lottery Authority has been exempted from the new 10% withholding tax on betting and lottery wins. According to NLA, it had an agreement with the Ghana Revenue Authority to exempt them from this new 10% tax which takes effect from 15th August.

This means the wins of its patrons will not be affected. Additionally, all Private Lotto Operators and Third Party Collaborators operating the NLA 5/90 Game will not be affected.

NLA STATEMENT

Management of the National Lottery Authority (NLA) wishes to inform its patrons, the general public and all stakeholders that the NLA is exempt from the new 10% withholding
tax on lottery wins.
The Ghana Revenue Authority (GRA) has announced that effective 15th August 2023, it will implement a 10% withholding tax on all betting, games and lottery wins.
In an agreement with the GRA, the NLA has, for now, been exempted from the 10% tax on lottery wins of its 5/90 Game. This means the wins of its patrons will not be affected.
Additionally, all Private Lotto Operators and Third Party Collaborators operating the NLA 5/90 Game will not be affected.
In line with this directive, the NLA, in collaboration with the GRA, the Security Services and Law Enforcement Agencies, will clamp down on all persons operating illegally and prosecute them in accordance with the law.
The NLA, in partnership with the GRA, will also ensure that all Private Lotto Operators and Third Party Collaborators comply with this directive.”

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The Ghana Revenue Authority (GRA) is hoping to mobilise about GH¢1.2 billion in the initial stages of implementation of the taxation of lottery operators. Revenue mobilisation from the taxes is expected to increase to about GH¢3 billion after the initial stages.

The latest development follows the passage of the Income Tax (Amendment) Act, 2023 (Act 1094), which subjects all lottery wins to the withholding tax, to be deducted by the lottery operators and paid to the GRA.

In line with the law, the withholding tax deduction applies to winnings paid by private lotto operators of sports betting, casino operators, route operations (slot machines), marketing promotions, national lotto betting, remote interactive games operators, and others.