'Lovers' of lotto and betting activities are expected to pay a five
per cent tax on lotto winnings that are in excess of GhS2,592.
This follows the passage of a new Income Tax Act introduced by government, which took effect from January 1, 2016.
According to Mr Edward Gyamerah, a Deputy Commissioner in charge of Policy and Programmes at the Ghana Revenue Authority (GRA), government had decided to use GHS2,592 as a base figure. This followed a new tax classification which now recognises lotto staking as an investment.
“One of the new introductions in the new law is the recognition of lottery activity as an investment activity.
So if you engage in any lottery business or activity, the tax law recognizes it as an investment activity and therefore when you make any claim, you pay tax on your investment income.
The law has made it simpler for everybody that forgets about the investment cost; whenever you make a gain, pay tax of 5% on the gain, if the gain exceeds GHc2,592 at any point in time.
If you get GHc2, 000 nobody is going to ask you to pay tax.'' The tax is to be collected by lotto paying agencies and paid to the GRA, Mr Gyamerah said at the Graphic Business-Stanbic Bank Breakfast meeting on tax in Accra on Tuesday.
He explained that the new law was meant to help clarify issues with tax and called for all to support it by engaging in self-assessment of their tax obligations.
Once a company does that, he said it would have been exempted from penalties from the authority.
This follows the passage of a new Income Tax Act introduced by government, which took effect from January 1, 2016.
According to Mr Edward Gyamerah, a Deputy Commissioner in charge of Policy and Programmes at the Ghana Revenue Authority (GRA), government had decided to use GHS2,592 as a base figure. This followed a new tax classification which now recognises lotto staking as an investment.
“One of the new introductions in the new law is the recognition of lottery activity as an investment activity.
So if you engage in any lottery business or activity, the tax law recognizes it as an investment activity and therefore when you make any claim, you pay tax on your investment income.
The law has made it simpler for everybody that forgets about the investment cost; whenever you make a gain, pay tax of 5% on the gain, if the gain exceeds GHc2,592 at any point in time.
If you get GHc2, 000 nobody is going to ask you to pay tax.'' The tax is to be collected by lotto paying agencies and paid to the GRA, Mr Gyamerah said at the Graphic Business-Stanbic Bank Breakfast meeting on tax in Accra on Tuesday.
He explained that the new law was meant to help clarify issues with tax and called for all to support it by engaging in self-assessment of their tax obligations.
Once a company does that, he said it would have been exempted from penalties from the authority.
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