Togo introduces 5% withholding tax on major lottery wins from 2026

From 1 January 2026, Togo’s government will apply a 5% withholding tax on higher-value lottery prizes paid out by the national lottery operator, tightening fiscal oversight of gaming revenues while simplifying tax obligations for winners.

Togo has moved to capture a larger share of revenue from its regulated lottery sector by introducing a 5% withholding tax on higher-value winnings. The measure, which forms part of a broader fiscal reform package taking effect on 1 January 2026, will apply automatically at the point of payout on qualifying prizes issued by the national lottery.

Under the new rules, players who land wins above a defined threshold will see 5% of their gross prize withheld and remitted directly to the tax authorities by the lottery operator. This shifts the burden of calculation and payment away from individual winners, who will no longer need to declare these amounts separately for income tax purposes, while ensuring that the state receives a consistent share of substantial payouts.

Officials say the change serves two parallel objectives. First, it strengthens transparency and traceability around lottery revenue flows by embedding tax collection directly into the payout process. Second, it is designed to simplify compliance for ordinary players, who benefit from a clear, upfront tax treatment instead of facing uncertainty at the end of the tax year.

The withholding tax applies to all eligible draw-based and instant-win products offered by the national lottery, but does not alter the rules on participation or prize structures. For the lottery operator, the reform means adapting payout systems, player communication and reporting tools so that the 5% deduction and remittance are handled automatically and can be audited by the Ministry of Finance.

For operators and suppliers active across Francophone Africa, Togo’s move underscores a wider regional trend: governments are increasingly using targeted levies on gaming GGR and player winnings to reinforce public finances, while looking to keep the experience straightforward for players through simple, source-based withholding mechanisms.