Gabon is a country located on the west coast of Africa, on both sides of the equator. A former French colony, Gabon maintains strong ties with France, the French language, and culture. The capital is Libreville.
CONSUMPTION TAXES
Nature of Value Added Tax (VAT) – Taux sur la valeur ajoutée (local name). Tax rate 18%. A reduced rate of 10% applies to manufacturing operations and sales of certain products (such as mineral water, chicken, and sugar) are listed in article 221 of the Gabon Tax Code.
A rate of 5% applies to sales and services related to cement, while exports and international transport are at a zero rate. Export and international transport are subject to a zero rate.
Other consumption taxes Excise taxes are levied on luxury goods, alcoholic beverages, perfumes and cosmetics, caviar, salmon, cigars, and cigarettes at rates ranging from 5% to 25%, plus a special tax. depending on the quantity. A Special Solidarity Contribution (SSC) is levied on goods and services at a rate of 1% (calculated based on the invoiced amount after taxes) from companies whose annual turnover excluding taxes is at least 30 million XAF. Stamp duties and registration fees also apply.
CORPORATE TAXES
Company tax 30%. If foreign companies have a permanent establishment in Gabon, they are required to pay taxes as local companies. If they do not have a permanent establishment, they are subject to withholding tax at the rate of 20% on income derived in Gabon. Branches of foreign companies are subject to 20% tax on repatriated profits (10% if the foreign company is located in a country that has signed a tax treaty with Gabon) in addition to corporate income tax. like regular business income.
Capital gains derived from the disposal of fixed assets in the course of trading are excluded from income for three years if the taxpayer registers the capital gains in a particular account and reinvests the profit in new fixed assets during the same period. Net capital gains earned from intragroup transactions are taxed at a reduced rate of 20%.
Under certain conditions and provided that a special request was made before incorporation, a startup may use the accelerated depreciation method for the equipment purchased during its first five years of operation. Bad debt can be deducted from the result of the fiscal year during which the debt became completely bad. General provisions cannot be deducted if they are not related to existing liability or loss. The Gabonese Tax Code provides for a five-year carryforward of net operating losses, while loss carry forward is not allowed. Rent to a company is allowed as a deductible expense if it is at market prices.
Charitable contributions made to organisms of public interest located in Gabon may be deducted (within 1 company turnover). Under certain conditions, management fees paid to the foreign parent company may be decreased. Fines are non-deductible, like most taxes (except for some professional taxes).
Other corporate taxes
The tax is levied on buildings at a charge of 15% of the rental value after deducting 25% of the amount for damage and maintenance. Undeveloped properties are taxed at a rate of 25% of taxable income, which corresponds to 4% to 5% of the rental value or 10% of the purchase price.
Remote transfers made in Gabon to nations outside the Central African Monetary Union (UMAC) are taxed at an assessment of 1.5% of the amount transferred.
The business license tax applies to individuals and legal entities engaged in any profession, business, or industry in Gabon, regardless of nationality. The rate can vary from 15,000 to 540,000 XAF.
A franchise tax of 10,000 to 500,000 XAF is levied on any company that conducts a trade, business, or activity that is not expressly exempt from payment, depending on the size, nature, and location of the company.
All beneficiaries of timber, mining, agriculture, or hydrocarbon rights must pay an annual royalty of between 50 and 300 francs per hectare, depending on the nature of the permit.
Insurance premiums are taxable at rates that differ depending on the type of insurance, from 0% (life) to 30% (fire).
Employers are required to contribute 20.1% to the National Social Security Fund (CNSS) and the National Health Insurance and Social Security Fund (CNAMGS) with a different annual tax base.
Eligible Deductions and Tax Credits
A standard deduction of 20% on gross personal income may be applied to adjusted gross income for business-related expenses. This deduction is limited to a maximum of 10 million XAF.
The marital status of taxpayers forms the basis for individual income tax groups (“shares”).
Special Tax Regime for Foreign Nationals
Persons are considered to have habitual residence in Gabon if they have a home in the country (as an owner, tenant, or beneficial owner), or if their main residence is in Gabon.
Individuals who regularly reside abroad are required to pay individual income tax on all income earned in Gabon.
