INDIVIDUAL TAXATION

Residents are taxed on their worldwide income. Married couples are taxed jointly on unearned income.

A married woman can only elect separate taxation if she receives earned or professional income. For any other income attributed to a married woman, it is deemed to be her husband’s income for tax purposes.

INCOME TAX

Individuals engaged in a business, trade, profession or vocation are taxed at the rate of 3% on either their turnover or gross receipts, whichever is greater.

In computing taxable income, any expenditure which is wholly and exclusively incurred in the production of such income is deductible.

All resident individuals in Gambia are entitled to a standard deduction of GMD7,500 (US$278). This deduction may be available to non-residents if they can prove their Gambian citizenship.

Residents may be taxed on the basis of their turnover if the amount of tax payable on this basis would be greater. In this option, the tax is levied at a flat rate of 3%.

RENTAL INCOME
Rental income is taxed at progressive rates. In computing for taxable income, repair and maintenance costs, interest on associated borrowings, and depreciation are deductible from the gross rent.

CAPITAL GAINS
Capital gains are assessed and taxed under special rules. Capital gains may be taxed in two ways, with the option that results in higher tax liability as the applicable method: net gains are taxed at 15%, or the 5% tax is levied on the selling price.

Capital gains realized from the following transfers of property are exempt from taxation:

• Transfers of properties as a gift or inheritance
• Transfers of real property for a consideration of GMD5,000 (US$185) or less (excluding properties valued at over GMD20,000 (US$741)