 Priority Areas of the
Government:
Although domestic and foreign investment is encouraged in virtually
all the sectors of the Gambian economy, the Government is giving the
highest opportunities & priority to, & is especially eager about increased flow of investment into
certain areas.
Agriculture, especially in
horticulture, floriculture, animal husbandry, fruit/vegetable
processing and canning;
Fisheries and forestry exploitation;
Tourism and travel;
Light manufacturing & assembling;
Energy (electricity); Mineral exploration & exploitation especially in the country's
hydrocarbon potential;
Communication and services in light of the new national policies
geared towards deregulation, divestiture and opening up of this
sub-sector.
No Restrictions:
Notwithstanding Government's wishes in influencing location of
investment, the investment and other Government policies do not have
any restrictions on the range of
 business activities in which
investors may engage. The government is maintaining its open-door
non-discriminatory policy of ensuing that no foreign investor is
subject to restrictions that are not applicable to domestic investors
and vice versa. The policy also seeks to encourage equity
participation of foreign investors as a means of enhancing the spread
and transfer of technology, technical, managerial and entrepreneurial
skills.
Legal Guarantees:
Within the broad legal framework, the Government assures investors
security of title and guarantees that investment in the country will
not be expropriated.
Taxes and Administrative Charges:
A number of direct taxes are applicable in The Gambia. There are
direct taxes on salaries, real property, income earned from various
business ventures and through various sources. There are also
exemptions, discounts, relief and tax holidays. The administration of
taxes comes under the jurisdiction of the Income Tax Department in
Banjul.
Who is Liable to Pay Taxes:
Any person to whom income has accrued, derived from, brought into or
received in The Gambia is liable to pay tax on such income in respect
of:
a) Gain or profits;
b) Income from any trade, business, profession or vocation that may
have been carried out;
c) Gains or profit from any employment including allowances whether
payable in money;
d) Dividends, interests or discounts;
e) Any pension, charge or annuity; or
f) Rents, royalties, premiums and any other profits arising from
property.
Safeguards Against Double Taxation:
There is a relief from double taxation of any person resident in The
Gambia who pays or is liable to pay taxes in any year of assessment in
a Commonwealth country. There are also double taxation arrangements
entered into between the Government of The Gambia and other countries.
Where such arrangement is entered into, residents of The Gambia who
are liable to pay taxes in such countries are relieved from double
taxation.
These tax relief are made in the form of tax credits. This is to say
that only that part of the income which is liable to tax in The Gambia
and is also subject to tax in the other country would be granted
relief to the extent of the tax in that other country.
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Taiwan
Types of Taxes:
Corporate Taxes
Personal Income Tax
Payroll Tax
Capital Gains Tax
Withholding Tax
Environmental Tax
National Educational Levy
Tax on Contractor
Private Practitioner Tax
Corporate Taxes:
Businesses that make profits at the end of a financial year are to pay
corporate tax at the rate of 35% of computed/accepted net profit.
Companies that register a loss are charged the turnover tax (2% of
turnover if audited accounts are submitted or 3% of turnover of
un-audited accounts, whichever is greater) except where a company is
exempted as in the case of companies that are issued with the Special
Investment Certificate or Free Zones Licence.
Personal Income Tax:
 This tax is payable by all businesses to the Treasury. It is the tax
on personal income and it ranges from 10-35% depending on the net
earning of an employee
Payroll Tax:
There is a payroll tax in respect of every non-citizen employed in The
Gambia. This tax is in the sum of D10, 000 (Ten thousand Dalasi) and
it is payable by the employer of the non-citizen not later than the
1st day of January each year. This tax applies to all categories of
non-Gambians except those granted an exemption and those in the public
sector.
Tax on Contractor:
There is a ten per cent (10%) tax on the gross fees payable to
contractors or sub-contractors for any work or for supplying labour
for such work. The person who retains the services of the contractor
or sub-contractor is required to make the necessary deductions for
this tax.
Private Practitioner Tax:
There is a flat rate tax of D10, 000 (ten thousand Dalasi) per annum
on all private practitioners in the following fields of professional
practice:
(a) Accountants
(b) Architects
(c) Druggists
(d) Dental Surgeons
(e) Engineers
(f) Legal Practitioners
(g) Medical practitioners
(h) Pharmacists
(i) Surveyors
Risk Management & Dispute Resolution:
Both local and foreign investors are protected by the laws of the
country and where an offence is committed, due legal procedure is
applied and investors can have unimpeded access to local and
international arbitration.
The Gambia is also a member of the International Centre for the
Settlement of Investment Disputes (ICSID) and the Multilateral
Investment Guarantee Agency (MIGA) of the World Bank Group.
The Constitution of The Gambia guarantees and safeguards against
nationalization and expropriation of investments. The Investment
Promotion Act and Free Zones Act 2001 also contain provisions against
expropriation of properties of investors.
Industry Sectors:
Agriculture,
Energy and Mining,
Financial Sector,
Fisheries,
Food and Drink Processing,
Manufacturing,
Tourism,
Transportation
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Incentives
& Opportunities:
The Gambia offers attractive incentive packages to investors under the
Gambia Investment Promotion Act 2001 & Free Zones Act 2001 for all
sectors of the economy. These include exemptions from import duties
and tax
 holidays.
Apart from these specific incentive packages, others
can be negotiated with the Agency depending on the strategic nature of
the investment. The award of incentives does not differentiate between
domestic and foreign investors and all investors are treated equally.
Free Zones Licence:
As a strategy for developing the export potential of the country,
GIEPA is also developing Free Zones in specially selected locations
to enable investors to operate in an environment that has the ideal
set of infrastructure and special tax incentive regimes.
Conditions:-
a) Transactions in the Free Zones shall be denominated in foreign
exchange; Investment in the zones should be sufficiently viable both
commercially and financially; Sufficient generation of domestic value
added to quality finished product for conferment of origin status;
b) Employment generation and training of nationals;
c) Ability to export a substantial portion (70%) of output in foreign
markets;
d) Positive contribution to the formation of domestic productive
capital;
e) Special attention and encouragement shall be extended to the
establishment of single factory or stand-alone free zones outside the
Greater Banjul Area.
Incentives Package:
Licence holders shall have the following incentives extended to them:-
a) Exemption from all taxes and customs duties payable on all imports
provided that the imports are used or to be used exclusively within
the zone, and subject to any other limitations specified by the
regulations made pursuant to the Act;
b) Where import duty or sales tax has been paid by a zone investor in
respect of any goods on their importation into the customs territory,
no refund shall be allowed merely because the goods are to be later
transferred into any of the free zones;
c) Exemption of customs duty, excise duty and sales tax on goods
produced within or imported into any of the zones, unless the goods
are entered for consumption into the national customs territory;
d) Exemption of import duty on capital equipment;
e) Full exemption of corporate tax or income tax for the first 10
years from the date of approval of license in the case of trading
activities in the zones, thereafter tax shall be pegged at a rate not
exceeding six per cent per annum;
f) For activities related to tourism corporate tax or income tax shall
be charged at the rate of ten per cent for the first 20 years, and
shall revert to the normal rate thereafter;
g) Full withholding of corporate or income tax on dividend and other
payments during the period of tax holiday;
h) Full relieve from payment of municipal taxes;
i) Zone investors shall also be exempted from pay roll tax or other
restrictions or prohibitions on import or export trade with the
exception of trade in firearms, military or other illegal goods.
Special Investment Certificate:
For the purpose of investing in the domestic economy, the Government
has identified a number of sectors as priority areas, and investing in
these sectors will give access to attractive and special investment
incentive. These sectors include:-
Priority Sectors:
Agriculture , Forestry & Fisheries
Manufacturing
Skills Development
Communication
Energy
Mineral Exploitation
Services (Financial, off-shore banking, Health and Veterinary
services, river and transportation, information technology).
Eligibility:
Special Investment Status shall be conferred to investments, which
fulfill the following eligibility criteria:
The establishment of a company or partnership under the laws of The
Gambia;
Investment in fixed assets of at least ONE HUNDRED THOUSAND United
States Dollars or its equivalent at the time of application for the
incentives;
Investment must be outside the Free Zones and in one of the priority
sectors listed below.
Benefits for Special Investment Certificate Holders:
Investors upon whom “special investment” status has been conferred
shall be awarded Special Investment Certificates, which entitle them
to benefit from the following incentive package for a period of five
years:-
Exemption from withholding tax and tax on dividends;
Exemption from customs duties on the following items:-
The approved capital equipment, machinery, appliances, furniture and
fittings imported to be used by the project or business;
The approved quantity of semi-finished products, spare parts, raw
materials and other supplies to be used in the production process;
Exemption from the sales tax on the items mentioned in paragraph (b);
Exemption from the turnover tax;
Preferential treatment for land allocation for the site of the
proposed investment and the provision of infra-structural facilities;
Special and attractive scheme of accelerated depreciation as set out
in the Second Schedule to the Investment Promotion Act.
Labour Regulations:
This section outlines some of the key legislation regarding the
employment of workers in The Gambia including the procedures required
for the employment of foreigners. It also outlines details of the
mandatory National Provident and Pensions Fund and some indicative
labour costs.
Labour Legislation:
The legal framework of labour relations consists of the Labour Act,
1990, and of regulations issued there under. The Act covers the
general conditions of employment including dismissal as well as
recruitment and hiring of labour, registration and training,
protection of wages, registration of trade unions and employers'
organizations, industrial relations, and procedures for the settlement
of labour disputes.
The cost of labour in The Gambia is relatively cheap. The amount of
wages paid to employees is determined principally on the basis of a
minimum wage structure fixed by the joint industrial councils (JICs)
or through the process of collective bargaining involving the worker
and the employer in consultation with the Government. The workforce is
generally regarded as friendly, hardworking and disciplined.
The Gambia has a liberal policy concerning the employment of
foreigners for managerial and technical assignments. Depending on the
requirements of the Company, as judged by an allocation committee, the
company is allotted an expatriate quota for specific posts for a
stipulated period.
A residence permit should be obtained, usually after the arrival in
The Gambia of the person (s) concerned. The entry permit covers the
immediate members of the expatriate’s family. However, they are not
permitted to undertake any employment without prior permission
National Provident and Pension Fund:
Employers are required to enroll their employees in the National
Provident Fund or the National Pension Scheme, both administered by a
parastatal body, the Social Security and Housing Finance Corporation
(SSHFC). The Provident Fund provides employees with a lump sum payment
at retirement, while the Pension Scheme provides a post retirement
pension (which may be combined with a lump sum payment). The statutory
retirement age in The Gambia is 55. Contributions to the National
Provident Fund are to be made by the employer and the employee,
at rates of 10% and 5% of gross salary respectively. By contrast, in
the case of the National Pension Scheme, only employers contribute on
behalf of their employees at the rate of 19% of gross salary.
Average Labour Costs:
From Factory Worker US$ 47 to
Chief Executive US$ 750
Investment Laws & Regulations:
The Gambia Investment Promotion Act 2001 and Free Zones Act 2001 are
the main laws governing investment in The Gambia. These Acts provide
guidance on investing in The Gambia and clearly indicate the priority
sectors for the country, guarantees to investors, investment
incentives eligibility criteria, procedures, the institutional
framework and answers to questions that investors usually consider in
making an investment decision.
Investment Promotion Act
Free Zones Act 2001
Other Major Laws & Regulations:
In addition to the Gambia Investment Promotion Act 2001 and Free Zones
Act 2001, there are other laws and regulations that impact on
businesses and these include:
Environment Act 1994
Income Tax Act 2004
Business Registration Act 2004
National Environment Management Act(NEMA)1994,
Hazardous Chemicals and Pesticide Control and Management Act 1994,
EIA Guidelines,
Environment Quality Standards Approved
Income and Sales Tax Act 2004
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