Verified Facts
Tax rates in Gabon range from 5% to 50% for individuals, with a corporate tax rate of 35%, and a value-added tax (VAT) rate of 18%, making it essential for expats and businesses to understand the tax system to navigate their financial obligations effectively.
Tax laws change frequently. Always consult a qualified tax professional for advice specific to your situation. This is a general guide only.
Quick Facts
Tax System Overview
Gabon has a territorial taxation system, where individuals and businesses are taxed only on their Gabonese-sourced income. Residents are taxed on their worldwide income, but non-residents are taxed only on their income derived from Gabonese sources. To be considered a tax resident in Gabon, an individual must have a permanent home in the country, be present in the country for more than 183 days in a calendar year, or have their center of economic interests in Gabon.
The tax system in Gabon is administered by the Direction Générale des Impôts, which is responsible for collecting taxes, enforcing tax laws, and providing tax services to taxpayers. The tax year in Gabon runs from January 1 to December 31, and taxpayers are required to file their tax returns by March 31 of the following year. Understanding the tax system and residency rules is crucial for individuals and businesses to comply with tax laws and take advantage of available tax incentives.
Personal Income Tax
| Income Bracket (XAF) | Tax Rate |
|---|---|
| 0 - 500,000 | 5% |
| 500,001 - 1,000,000 | 10% |
| 1,000,001 - 2,000,000 | 20% |
| 2,000,001 - 5,000,000 | 30% |
| 5,000,001 and above | 50% |
| Personal income tax rates in Gabon are progressive, with five income brackets. Taxpayers are allowed to claim deductions for expenses such as mortgage interest, charitable donations, and medical expenses. Allowances are also available for dependents, such as children and elderly relatives. Taxpayers are required to file their tax returns electronically, and the deadline for filing is March 31 of the following year. |
Corporate & Business Tax
- The corporate tax rate in Gabon is 35%, which applies to all companies, including subsidiaries of foreign companies.
- Small business incentives are available, such as reduced tax rates for small and medium-sized enterprises (SMEs) and exemptions for startups.
- Free zones are available in Gabon, which offer tax exemptions and other incentives for companies that operate within these zones.
- Registration requirements for businesses in Gabon include registering with the Registre du Commerce et du Crédit Mobilier and obtaining a tax identification number.
- Companies are also required to file their tax returns electronically, and the deadline for filing is March 31 of the following year.
VAT / Sales Tax
- The standard VAT rate in Gabon is 18%, which applies to most goods and services.
- Reduced rates of 10% and 5% apply to certain goods and services, such as basic foodstuffs and pharmaceuticals.
- Exemptions are available for certain goods and services, such as education and healthcare services.
- A tourist refund scheme is available for foreign tourists, which allows them to claim a refund of VAT paid on certain goods and services.
For Expats & Foreign Workers
- Tax residency rules for expats and foreign workers in Gabon are based on the number of days spent in the country, with individuals who spend more than 183 days in a calendar year considered tax residents.
- Double taxation treaties are in place with several countries, including France, Belgium, and Canada, to avoid double taxation of income.
- Social security contributions are mandatory for all employees, including expats and foreign workers, and are used to fund social security benefits such as pension and healthcare benefits.
- Remittance rules require taxpayers to report and pay tax on income earned abroad, and to file a tax return with the Gabonese tax authorities.
- Expats and foreign workers are also required to obtain a tax identification number and to register with the Direction Générale des Impôts.
- Tax credits are available for foreign taxes paid on income earned abroad, which can be used to reduce the amount of tax payable in Gabon.
Crypto & Investment Income
- Investment income, such as dividends, interest, and capital gains, is subject to tax in Gabon, with rates ranging from 10% to 35%.
- Dividends are subject to a withholding tax of 20%, which can be reduced or eliminated under double taxation treaties.
- Cryptocurrency is considered a capital asset in Gabon, and gains from the sale of cryptocurrency are subject to capital gains tax at a rate of 35%.
- Tax reporting requirements for investment income and cryptocurrency gains are in place, and taxpayers are required to report these gains on their tax return.