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Gabon

Country Name: Gabonese Republic (Gabon)
Currency: Central African CFA Franc (XAF)
Primary Tax Authority: Directorate General of Taxes and Domains (Direction Générale des Impôts et des Domaines, DGID)
Key Legislation:

  • General Tax Code (Code Général des Impôts)
  • Investment Charter (Charte des Investissements)
  • Value Added Tax (VAT) Law
  • Customs Code

Fiscal Authority Allocation

Centralized Fiscal System:
Gabon operates a centralized tax system, with the Directorate General of Taxes and Domains (DGID) responsible for administering and collecting taxes, including corporate income tax (CIT), personal income tax (PIT), value-added tax (VAT), and other indirect taxes. Local taxes may be imposed at the municipal level.

Corporate Income Tax (CIT)

Standard Rate: 30%
Gabon imposes a flat corporate income tax rate of 30% on net taxable income for resident companies. For companies operating in the oil and gas sector, the rate is 35%.

Corporate Forms and Taxation:

  1. Resident Companies: Taxed on worldwide income.
  2. Non-Resident Companies: Taxed only on Gabon-sourced income.

Exemptions and Incentives:

  • Investment Charter: Gabon’s Investment Charter offers tax incentives for companies investing in priority sectors such as agriculture, tourism, infrastructure, and renewable energy. These incentives include CIT exemptions, customs duty reductions, and VAT exemptions for up to 10 years.
  • Special Economic Zones (SEZs): Companies operating in SEZs benefit from CIT exemptions, customs duty exemptions, and VAT reductions for up to 10 years.

Goods and Services Tax (GST) / Value-Added Tax (VAT)

Standard Rate: 18%
Gabon imposes VAT at a standard rate of 18% on most goods and services. VAT is applied to domestic production and imports.

Reduced Rates:
Reduced VAT rates of 10% and 5% apply to certain sectors, including agriculture and basic consumer goods.

Exemptions:
Certain essential goods and services, such as healthcare, education, and public transportation, are VAT-exempt. Exports are zero-rated, allowing businesses to reclaim VAT paid on inputs used in producing export goods.

Personal Income Tax (PIT)

Progressive Rates:
Gabon applies a progressive personal income tax system to residents’ worldwide income and non-residents’ Gabon-sourced income.

Resident Tax Rates for 2023 (Annual Income):

  • Up to XAF 1,500,000: 0%
  • XAF 1,500,001 to XAF 3,600,000: 5%
  • XAF 3,600,001 to XAF 6,000,000: 10%
  • XAF 6,000,001 to XAF 10,000,000: 15%
  • Above XAF 10,000,000: 35%

Non-Resident Tax Rate:
Non-residents are subject to a flat tax rate of 20% on Gabon-sourced income.

Deductions and Allowances:
Taxpayers can deduct expenses related to social security contributions, charitable donations, and certain educational and healthcare costs.

Additional Mandatory Contributions

Social Security Contributions:
Employers and employees must contribute to Gabon’s social security system, which covers pensions, healthcare, and unemployment benefits.

  • Employer Contribution: 20.1% of gross salary.
  • Employee Contribution: 2.5% of gross salary.

Withholding Taxes

  • Dividends: 15%
  • Interest: 10%
  • Royalties: 10%
    Gabon imposes withholding taxes on payments to non-residents, including dividends, interest, and royalties. These rates may be reduced under Gabon’s double taxation agreements (DTAs).

Transfer Pricing Rules

Gabon follows the arm’s-length principle for transactions between related parties. Companies must apply market-based pricing for cross-border transactions between related entities. Transfer pricing documentation is required for large companies engaged in significant related-party transactions.

Special Tax Regimes

  • Special Economic Zones (SEZs): Companies operating in Gabon’s SEZs enjoy CIT exemptions for up to 10 years, VAT exemptions, and reduced customs duties. These zones are designed to encourage investment in manufacturing, technology, and export-oriented sectors.
  • Investment Incentives: Gabon’s Investment Charter provides tax holidays and exemptions for companies in priority sectors, such as agriculture, tourism, and renewable energy. These incentives include CIT reductions, VAT deferrals, and customs duty exemptions on imported equipment.

Other Taxes

  • Customs Duties: Gabon imposes customs duties on imports, with rates ranging from 5% to 30%, depending on the type of goods. Certain raw materials and equipment for industrial use may benefit from reduced or zero rates.
  • Excise Taxes: Excise taxes are levied on specific goods, including alcohol, tobacco, and petroleum products. Rates vary depending on the product.
  • Property Tax: Gabon imposes a property tax on commercial and residential real estate, based on the rental value of the property, with rates varying depending on the location and use of the property.

Double Taxation Agreements (DTAs)

Gabon has signed several double taxation agreements (DTAs) with countries such as France, Morocco, and China. These agreements help reduce withholding taxes on cross-border payments and prevent the double taxation of income earned in Gabon and other jurisdictions.

Local Taxes

Local governments in Gabon may impose minor municipal taxes, such as property taxes and business license fees. However, most major taxes, such as CIT, PIT, and VAT, are centrally administered by the Directorate General of Taxes and Domains (DGID).

Compliance and Reporting

Annual Filing:
Corporate tax returns must be filed by March 31st of the following year. Personal income tax returns are generally due by March 31st. VAT returns are filed monthly or quarterly, depending on the size of the business.

Penalties for Late Filing:
Penalties for non-compliance or late filing include fines and interest on unpaid taxes. Interest is generally charged at 1% per month on overdue tax amounts, and additional fines may be imposed for underreporting or non-payment of taxes.

Recent Developments

Expansion of SEZs:
Gabon has been actively expanding its Special Economic Zones (SEZs) to attract foreign direct investment (FDI) in sectors such as agro-industry, mining, and manufacturing. Companies operating in SEZs benefit from reduced tax rates and simplified administrative processes.

Oil and Gas Sector Taxation:
Given Gabon’s reliance on the oil and gas sector, the government has introduced tax reforms to promote investment in oil exploration and production. These reforms include reduced withholding taxes, customs duty exemptions on imported equipment, and CIT reductions for companies in the oil and gas sector.

Focus on Sustainable Development:
Gabon is increasingly focusing on promoting sustainable development projects, particularly in renewable energy and eco-tourism. Tax incentives, such as CIT exemptions and customs duty reductions, are available for companies investing in these sectors.

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