INVESTMENT INCENTIVES
Investment incentives
INVESTMENT INCENTIVES
The Gambia offers attractive incentive packages to investors, categorised under Special Investment Certificate or Free Zones Licence.
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;
Investors upon whom “special investment” status has been conferred will 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 sales tax on the items mentioned in paragraph (b);
- Exemption from turnover tax; Preferential treatment for land allocation for the site of the proposed investment and the provision of infrastructural facilities;
- Special and attractive scheme of accelerated depreciation as set out in the Second Schedule to the Investment Promotion Act.
- Exemption from all taxes and customs duties payable on all imports provided that the imports are used or to be used exclusively within the Zones, and subject to any other limitations specified by the regulations made pursuant to the Act;
- 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;
- 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;
- Exemption of import duty on capital equipment;
- 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;
- 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;
- Full withholding of corporate or income tax on dividend and other payments during the period of tax holiday;
- Full relief from payment of municipal taxes;
- Zone investors shall also be exempted from payroll tax or other restrictions or prohibitions on import or export trade with the exception of trade in firearms, military or other illegal goods.
Direct Taxes | |
Personal Income Tax | Ranges from 0% – 25% on a graduated basis |
Corporation Tax | 27% of computed/accepted net profit or 1% of turnover of audited accounts or 2% of turnover of un-audited accounts |
Indirect Taxes | |
Capital Gains Tax | 15% of net gains or 5% of sales tax (in the case of personal tax) |
25% of net gains or 10% of sales tax (in the case of Company tax) | |
Environmental Tax | US$0.03 per person per month |
Value Added Tax | 15% |
National Education levy | Ranges from US$600 to US$1,100 depending on turnover |
Free Zones License
As a strategy for developing the export potential of the country, the Government 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.
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;
- Employment generation and training of nationals;
- Ability to export a substantial portion (70%) of output in foreign markets;
- Positive contribution to the formation of domestic productive capital;
Transactions inHow to apply for Incentives 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;
- Employment generation and training of nationals;
- Ability to export a substantial portion (70%) of output in foreign markets;
- Positive contribution to the formation of domestic productive capital;
