How To Apply for Withholding Tax In Gabon
- The agent who withholds tax is mandated under the Income Tax Act to pay to GRA the tax that was withheld (or that ought to be withheld) within 15 days of the closing of the month the month in which the payment was made.
- In the event of someone who is planning to quit Gabon the tax must be paid and withheld prior to the person who pays is allowed to leave.
- The agent is also obliged to keep and make available to the Gabon Revenue Authority, records of all payments made to the payee(s) and the tax withheld for a period of fifteen years following the conclusion of the year that these records pertain to.
- After receiving the payment of tax GRA sends to the payer the tax Credit Certificate, setting out the tax that was withheld. The agent who withholds tax must obtain the tax credit certificate the tax credit certificate from GRA and then deliver an tax credit document to the person paying.
Documents Required Withholding Tax
- Filled and completed tax withholding registration form
- Tax Identification Number (TIN)
- Identification documents
Office Locations and Contacts
- Ministry of Finance, Economy, Budget and Privatization
BP 165 Libreville
Tel: +241 76 12 10/176 0991/164 5925
Fax: +241 176 5838
Website:http://www.finances.gouv.ga
- Reserve/Central Bank of Gabon
112 Libreville
Tel: +241 76 13 52/
Tel:+241 76 02 06
Tel:+241 76 11 05
Fax: +241 77 54 06
Email: beac@beac.int
Website: http://www.beac.int
- Gabon Revenue Authority
Direction Gnral des Impts du Gabon
Administration Head:
Mr Jol OOUMA
Directeur Gnral des Impts
Institution Address:
B.P. 37 or 45
Libreville
Gabon
Contact Details:
Phone:+241 0179 53 76 / 7
Email: jogouma@yahoo.fr
What Are All The Eligibility
- All employees in Gabon must pay withholding Tax.
- Every penny earned from the sale of capital is tax deductible.
- All foreign companies that have no presence in Gabon are able to withholding tax.
- Every payment that is deducted from professional services are subject to 35% corporate tax.
- Any business in which the Government of Gabon has interest .
Fees
- Register for registration absolutely free
- The dividends earned as well as executive director’s fee, capital interest, as well as other investment gains can be subjected to taxation of 35 percent withholding tax.
Validity
Valid for a whole year
Processing Time
7 working days
Instructions
- Interest payments made by an Gabonese firm to a non-resident entity is subject to a withholding of 10% tax based on the gross amount of the interest paid (excluding tax on revenue)
- The royalties paid by an Gabonese company to a non-resident entity and consulting fees, commissions and fees for services rendered in Gabon are subject to withholding tax that is 10 percent.
- Tax is levied on the net income after an unconstitutional deduction for expenses.
- Additionally, the amount is withheld in order to pay taxes in the range of 10-15 percent of the amount due to professional services. This is at 3 percent for commercial services, and at 10% on commissions that are paid for commercial services to agents.
- Employers must deduct the tax that is scheduled on wages and salaries from their employees’ pay.
The agent who handles withholding is required to keep record of payments and withholding for 15 years.
The Information You Need
- Name
- Address
- Marital status
- Date/Country/place where birth took place
- The sources of income
- The type of business activity
- Tax agent
- Referee
The Document is required Withholding Tax
A withholding tax, sometimes known as a retention tax is a legal requirement by the government for those who pay an income item to deduct or withhold taxes from the amount of payment or pay.This tax is deducted from an employee’s earnings which the employer then sends directly to State tax officials. There are many withholding taxes that are imposed in Gabon including dividends Tax. Taxes on income are withheld at the source in many instances.
Dividends paid by the Gabonese firm to non-resident or resident person shareholder will be subject to withholding of 20% tax in the event that the tax treaty allows for an exemption at a lower rate. Dividends paid by an Gabonese company to corporate shareholders will be subject to 15 per cent withholding tax.
If an income received from an entity that is not a resident, the foreign tax that is paid on the dividend isn’t tax-deductible to Gabon company tax, unless an agreement on double taxation allows the possibility of an allowance.
The way dividends are treated from corporate shareholders is different when the sum is:
1.) The shareholder holds at minimum 25% of the shares in the affiliate
II) The main offices of the company’s shareholder as well as affiliates are at Gabon and/or another CEMAC state.
Iii) and the shares remain as the shareholders’ name for at least two consecutive years. In this scenario only 10% of the dividends received are tax-deductible.
- Social security contributions are rated by the employer based on total compensation received by the employee which is capped at a limit of XAF 18 1,000,000 annually that includes benefits in kind , but not including reimbursement for costs and benefits.
The overall rate of social security contribution is 22.6 percent, which is split between the employer (20.1 percent) and the employee (2.5 2.5 %)
- Taxation in Gabon is territorial in which tax is only imposed on the any profits earned from a non-resident or resident entity through operations in Gabon
- The most frequent instances in which the tax is withheld can be listed below.
Information that could be helpful
- Incentive Programs
- Gabon offers certain legal protections that include non-discrimination among businesses owned by nationals and foreign owned and operated, and there is no nationalization or expropriation without equitable and fair prior compensation decided by an independent third of the third.
- There are incentives specifically specific to certain industries including mining, the oil industry and new ventures.
The most important investment incentives are tax-free corporate income for 3 years for companies that are new as well as concessions for import duties exempt from duty on exports or AT, and tax reductions. Other tax incentives include the carrying forward of losses and depreciation and deferred taxation of capital gains reinvested for a period of 3 years.
External Links
http://www.africamines.com/gabon.html