Personal Income Tax is tax charged on the earnings of individuals and their businesses other than companies and partnerships. This could be based on the turnover or net profits.
All individuals engaged in economic or income generating activities in The Gambia are required to be registered and pay Personal income tax.
The rate of the PIT is the higher of the applicable tax rates in the 1st schedule or 1% of turnover for audited accounts or (2% of turnover in any other case). However, if business turnover is under D500, 000 per annum, then the tax liability is 3% of turnover.
Corporation tax is a tax charged on the earnings of companies, partnerships, or bodies of trust. This could be based on the turnover or chargeable income.
All companies, partnerships or bodies of trust operating in The Gambia are liable to pay corporation tax. Those incorporated and or controlled in the country are resident companies and are therefore, liable to pay corporation tax on all incomes. Non-resident companies, partnerships or bodies of trust are liable to pay tax only on the Gambian-sourced income.
The Corporation tax rate is the higher of 27% of net profit, or 1% of turnover on audited accounts (or 2% of turnover for unaudited accounts).
Value Added Tax is a consumption tax levied on taxable supplies of goods and services in The Gambia and on goods imported. It is not a tax on profits.
All consumers of taxable goods and services in The Gambia are liable to pay VAT. Equally all importers of taxable goods or services are liable to pay VAT.
The standard VAT rate is 15 percent. This rate is applied to all goods and services unless they are specifically exempted. Zero percent is applied to exports of goods and services.
All businesses with taxable supplies of at least D2, 000, 000 in a tax year are required to compulsorily register and charge VAT. In addition, businesses with taxable supplies of D1, 000, 000 and above in a tax year may voluntarily register.
VAT registrants can claim Input VAT credits, implying that the VAT paid on any expenditure can be recovered from GRA.
YES. A business that has been registered for 2 years and whose taxable turnover was below D1, 000,000 for the previous 12 months can apply for de-registration. However, the registrant is required to have filed regularly within this two-year period.
Diplomatic missions and diplomats, International Organisations, Non-Governmental Organisations, VAT registrants who are on credit for three consecutive months can apply for refund to GRA. Registrants, where 50% of their supplies in the preceding 12 months are zero rated e.g., exporters.
Withholding tax is a deduction from payments made to contractors and subcontractors for the carrying out of work, supply of labour or materials and/or provision of technical/consultancy services.
A taxpayer who retains the services of a contractor or subcontractor should withhold the tax and remit it to GRA. The tax paid is an advance payment on behalf of the contractor/subcontractor.
The withholding tax rate on contracts is based on the contract price; 10% for Gambian residents, and 15% for non-residents
Employment income tax is charged on employment earnings through the Pay As You Earn (PAYE) system. Employment income is any profit or gain arising from employment including wages, salaries, bonuses etc.
Any employee who earns incomes above D2, 000 per month or above D24, 000 annually arising from employment in The Gambia is subjected to employment income tax. Also, all residents in The Gambia who earn employment income outside the country are liable to pay employment income tax, subjected to the foreign source rule.
The rate of the PAYE tax is the applicable tax rates as in the 1st schedule
Fringe benefits tax is imposed on employers paying fringe benefits to their employees such as housing, motor vehicle, loans, etc.
All employers who provide fringe benefits to their employees are liable to pay fringe benefits tax.
The fringe benefit tax rate is 27%.
Capital Gains Tax is a tax imposed on the disposal of a capital asset such as land, machinery, shares, etc.
Any person who disposes a capital asset in The Gambia is liable to pay Capital Gains Tax. In addition, any Gambian resident who sells a capital asset outside The Gambia is liable to pay capital gains tax.
The Capital Gains Tax rates for individuals is the higher of 15% of the gains or 5% of the consideration. For companies, partnerships, trustees, etc. it is 25% of the gains or 10% of the consideration, whichever is higher.
Payroll Tax, also called Expatriate Quota Tax, is a tax imposed on any person employing a non-Gambian during a tax year.
All employers of non-Gambian citizens are liable to pay payroll tax. The employers are not supposed to deduct or recover the tax paid from the employees.
The annual payroll tax amounts are: D10,000 for Ecowas Citizens and D50,000 for all others.
Rental income tax is imposed on a taxpayer who has a taxable rental income for the year. In other words, any rent income received by a taxpayer from a rented property is subject to the payment of rental income tax. There are two different types of rental income: Residential Rental Income and Commercial Rental Income.
All properties owners who earn rental income from properties located in The Gambia are subjected to rental income tax.
The rental income tax rates are: 8% for residential rent earned and 15% for commercial rent, both on the gross rental income earned.
Dividend income tax is imposed on a taxpayer who has a taxable dividend income (distribution of profits by a company to a shareholder or partnership to a partner) during a tax year.
All resident companies or partnerships are liable to withhold dividend income tax on all dividend payments to resident and non-resident shareholders or partners.
The dividend income tax rate is 15% of the gross amount of dividend paid.