GHANA Law and Practice Contributed by: David Yaw Danquah, Legalstone Solicitors PRUC
12. Tax 12.1 Tax Rate by Sector
see. In such situations, a person liable on summary conviction shall be made to pay a fine of not more than 500 penalty units or as may be determined by the court, considering the ends of justice in the case. A penalty unit is GHC12. Precisely, however, the Fees and Charges (Miscellane- ous Provisions) Regulations 2023 (LI 2481), fix admin- istrative penalties for various offences. For instance, failure to pay winnings (every day that an operator defaults in paying winnings will attract a financial pen- alty of USD500. Also, the issuance of dishonoured cheques (for every day that an operator defaults in paying winnings) shall attract a financial administrative penalty of USD250. It is significant to understand that operating without a valid licence is subject to a finan- cial penalty. The fees range from 10% of the amount intended for the payment of licence and 30% of the amount intended for the payment of annual opera- tional fee. Also, failure to renew a licence shall attract a penalty of 10% of the licence renewal fee. It is important to point out again that the under-decla- ration of inventory (gaming machines, employees and shops) shall attract an administrative fee of 30% of the annual operational fee relating to the inventory type. The breach of issued guidelines for the gaming indus- try is also subject to an administrative penalty, in the mount of USD5,000. Additionally, misrepresentation of information and delay in submitting documents/infor- mation requested by the Gaming Commission shall attract an administrative fee. While the misrepresenta- tion of information shall attract a fee of USD20,000, the delay in submission of documents shall attract a fee of USD10,000.
The tax rate concerning a game of chance is deter- mined and fixed from time to time by regulatory authorities. Once determined, it applies uniformly to all operators without any discrimination whatsoever. The Ghana Revenue Authority, through the Income Tax (Amendment) Act 2025 (Act 1129), introduced a new tax regime for the gaming industry in Ghana. The new tax regime introduced a 10% withholding tax on games of chance and lottery winnings and a 20% GGR tax on the revenues of licence operators. Act 1129 provided that winnings from betting and lot- tery businesses be subjected to a 10% withholding tax, to become deductible at the payout point; mean- ing every punter in Ghana would be subjected to a 10% withholding tax on winnings. Additionally, Act 1129 imposed a 20% tax on the GGR of betting and lottery operators in Ghana. The GGR shall be the total amount staked, bet, or wagered less the total gross winnings paid or payable at the end of the period within one month of the transaction. It is the case that withholding tax on players’ winnings have been repealed under Act 1129. Besides that, the 20% GGR, other taxes applicable to the games of chance industry including PAYE (Pay As You Earn) tax deducted from an employee’s income are still in force. It is worth noting that VAT and corporate income tax are no longer applicable in Ghana’s games-of-chance industry due to the introduction of Act 1129.
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