 
Priority Overseas Investment 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.
• United kingdom
• Norway
• Sweden
• 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 D20, 000 (Twenty 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 D20, 000 (twenty 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
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 and 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
Business Starting
a Business
Disclaimer:
Do not rely on any of the above information to make any financial
or other decisions, it may also be out of date. The owner of this
website shall not be liable for any loss sustained to any person,
organisation or any other entitiy whatsoever as a result of reliance
on any of the above information.
|
|
Exchange Rates
|
|
Business Starting
A Business Currency &
Money Economic
Sectors | INCOME
TAX 
