Verified Facts
Tax rates in Gambia range from 0% to 30% for personal income, with a corporate tax rate of 27% and a value-added tax (VAT) rate of 15%, and it is essential for expats and businesses to understand these rates and the country's tax system to navigate their tax 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
Gambia has a territorial tax system, which means that individuals and businesses are taxed only on their Gambia-sourced income. However, residents are also subject to tax on their worldwide income, with credits available for taxes paid in other countries. To be considered a tax resident in Gambia, an individual must have a permanent home in the country, spend more than 183 days in a calendar year in Gambia, or have a home and family in the country. The tax year in Gambia runs from January to December, and taxpayers must file their returns by June 30th of the following year.
The Gambia tax system is designed to promote economic growth and development, with a range of incentives and exemptions available to encourage investment and entrepreneurship. The government has also implemented measures to improve tax compliance and reduce tax evasion, including the introduction of a new tax law and the establishment of a tax tribunal. Despite these efforts, the tax system in Gambia can be complex, and taxpayers are advised to seek professional advice to ensure they are meeting their tax obligations.
Personal Income Tax
| Income Bracket (GMD) | Tax Rate |
|---|---|
| 0 - 18,000 | 0% |
| 18,001 - 36,000 | 5% |
| 36,001 - 60,000 | 10% |
| 60,001 - 120,000 | 15% |
| 120,001 and above | 30% |
| Personal income tax in Gambia is progressive, with higher income earners paying a higher tax rate. Taxpayers are also entitled to various deductions and allowances, including a personal allowance of GMD 18,000, deductions for mortgage interest and charitable donations, and a rebate for taxpayers who have paid withholding tax on their employment income. Tax returns must be filed electronically, and taxpayers must also submit supporting documentation, such as pay slips and receipts for deductions claimed. |
Corporate & Business Tax
- The corporate tax rate in Gambia is 27%, with a reduced rate of 15% for small businesses with annual turnover of less than GMD 1 million.
- Small businesses may also be eligible for incentives, such as tax holidays and subsidies for training and equipment.
- Gambia has several free zones, including the Kanilai Free Zone and the Banjul Free Zone, which offer tax exemptions and other incentives to businesses that operate within these zones.
- To register a business in Gambia, companies must obtain a business license, register for tax, and obtain any necessary permits and approvals.
- Companies must also file annual tax returns and pay any tax due by the end of June following the tax year.
VAT / Sales Tax
- The standard VAT rate in Gambia is 15%, with a reduced rate of 0% for essential goods and services, such as food, healthcare, and education.
- Exemptions are available for certain goods and services, including financial services, insurance, and charitable activities.
- A tourist refund scheme is available for tourists who purchase goods and services in Gambia, allowing them to claim a refund of VAT paid on their purchases when they leave the country.
- Businesses must register for VAT if their annual turnover exceeds GMD 1 million, and must file VAT returns and pay any VAT due on a quarterly basis.
For Expats & Foreign Workers
- To be considered a tax resident in Gambia, an individual must have a permanent home in the country, spend more than 183 days in a calendar year in Gambia, or have a home and family in the country.
- Gambia has double taxation treaties with several countries, including the UK, France, and Germany, which can help to reduce tax liability for individuals and businesses with income from multiple countries.
- Expats and foreign workers may be eligible for social security benefits, including pensions and healthcare, if they have made contributions to the Gambia social security fund.
- Remittances of foreign currency are subject to exchange control regulations, and individuals must declare any foreign currency they bring into or take out of the country.
- Expats and foreign workers may also be eligible for tax incentives, such as tax holidays and subsidies for housing and education.
- It is essential for expats and foreign workers to understand their tax obligations in Gambia and to seek professional advice to ensure they are meeting their tax requirements.
Crypto & Investment Income
- Investment income, including dividends, interest, and rents, is subject to tax in Gambia, with a withholding tax rate of 10% for dividends and interest paid to non-residents.
- Cryptocurrency is not specifically regulated in Gambia, but it is subject to the same tax rules as other investments, with gains and losses taxed as capital gains or losses.
- Dividends received by Gambia residents are subject to tax, with a credit available for withholding tax paid on the dividends.
- Capital gains tax is charged at a rate of 20%, with exemptions available for certain types of property, such as primary residences and agricultural land.