Income tax in Gambia
May 28, 2020
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.
Taxable income is classified as (1) employment income, (2) income from trade and profession, and (3) investment income.
Employment income is taxed at progressive rates.
MONTHLY INCOME TAX 2018 ON EMPLOYMENT INCOME
|TAXABLE INCOME, GMD (US$)|
|Up to 24,000 (US$450)|
|24,000 - 34,000 (US$700)|
|34,000 - 44,000 (US$950)|
|44,000 - 54,000 (US$1,200)|
|54,000 - 64,000 (US$1,450)|
|Over 64,000 (US$1,600)|
MONTHLY INCOME TAX 2017 ON EMPLOYMENT INCOME
|TAXABLE INCOME, GMD (US$)|
|Up to 18,000 (US$450)|
|18,000 - 28,000 (US$700)|
|28,000 - 38,000 (US$950)|
|38,000 - 48,000 (US$1,200)|
|48,000 - 58,000 (US$1,450)|
|Over 58,000 (US$1,450)|
Individuals engaged in a business, trade, profession or vocations are taxed at the rate of 1.5% on either their turnover or gross receipts, whichever method yields a higher tax liability.
All resident individuals in Gambia are entitled to a standard deduction of GMD7,500 (US$188). This deduction may be available to nonresidents if they can prove their Gambian citizenship.
Rental income earned from leasing residential property is taxed at a flat rate of 10%. In computing for taxable income, repair and maintenance costs, interest on associated borrowings, and depreciation are deductible from the gross rent.
CAPITAL GAINS TAX
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 GMD7,500 (US$188) or less (excluding properties valued at over GMD20,000 or US$500)
There are no property taxes in Gambia.
Income and capital gains earned by companies are taxed at a flat rate of 27% levied on the net income, or 1% turnover tax levied on the total turnover for the tax year, whichever method yields a higher tax liability. Income-generating expenses are deductible when calculating taxable income.
A higher 2% turnover tax rate, instead of a 1% turnover tax, is levied on companies with unaudited accounts.
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 25%, or the 10% tax is levied on the selling price.