Priority Overseas Investment Areas:
 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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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 & 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$ 60to
Chief Executive US$ 1,000
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
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. |
