The government of Ghana is implementing amendments to its taxation regulations related to gambling, betting, lottery and games of chance, set to come into effect on August 15th.

From then onwards a 10 per cent withholding tax will be applicable to all winnings alone, excluding amounts initially staked in the game.

Accompanying this addition, the currently effective 15 per cent value-added tax (VAT) applied to each stake will no longer be valid. 

Any failure to adhere to this new tax measure will result in enforcement action against any gaming operator deemed non-compliant. This also extends to potential licence suspensions and terminations.

Edward Gyambrah, head of the Ghana Revenue Authority (GRA), had this to say on the matter:

“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we had with you and with the support of the gaming commission, you can be assured that your licences will be withdrawn.”

Tax revenue

The GRA has projected the new tax regulations will raise an estimated GH1.2 billion (€97 million) in the first year of enactment with incremental increases expected subsequent to this.

Nation-wide tax reformation

The West African nation has been undertaking a far broader tax reform, aimed at reducing Ghana’s considerable $58 billion debt, $5.5 billion of which is owed to foreign governments and state banks.

These revenue-raising efforts are a vital component in the acquisition of a $3 billion bailout from the International Monetary Fund (IMF) by the Ghanaian government. 

Significantly, this subsequent taxation change has come in lieu of a digital tax collection scheme which was introduced to the gambling industry specifically just last year.

SiGMA Balkans/CIS

As a globally recognised nexus for networking, SiGMA Group sets its sights next to the Balkans this September, when the SIGMA Balkans/CIS Summit heads to Limassol Cyprus.

A host of?networking opportunities and industry-leading knowledge?will be emanating from the much-anticipated event which will pack panel discussions, keynote speeches, start-up pitches and much more into 3 days in the diverse Cypriot city.