Personal Income Tax (PIT)

Personal Income tax (PIT)

Who is liable?

  • Residents, for their worldwide incomes. Nonresidents are taxed on income derived from Gabon only
  • An individual is deemed to be resident in Gabon if he or she stays at least six months on average in the calendar year in Gabon or if he or she maintains his or her main residence in Gabon.

An individual is deemed to have his or her main residence in Gabon if he or she satisfies either of the following conditions:

  • He or she has a home available to him or her as an owner, usufructuary or lessee.
  • He or she has his or her center of economic or vital interests or his or her habitual abode in the country.

What type of activity is subjected to PIT?

  • Salaried activity including benefit in kind (Tax Withheld at source)
  • Self-employed individuals (handicrafts, commercial, professional and agricultural)
  • Professional ministerial officers and liberal professions
  • Investment incomes (dividend, interest on loan savings accounts, etc…..)
  • Capital Gain

What income is subject to tax?

  • Taxable income includes all remuneration or compensation paid for services provided, including but not limited to, base salary, overtime, fringe benefits, allowances, and benefits in kind.
  • Under the Gabon Tax Code, a deemed value for benefits in kind is included in the tax base. The deemed value equals a percentage of gross salary.
  • The net income from each of the above categories is combined, and the total is subject to the progressive rates set forth in
  • Individuals may claim a deduction for professional expenses equal to 20% of gross salary after deduction of social contributions, subject to a cap of XAF10 million per year.

Benefit in kind

Rate

Housing

15%

Domestics related

5%

Water, Electricity

5%

Food

25% with 120.000 max by month

 Some PIT highlights

  • Employers must file an annual statement (DAS) of salaries by 30th of April following the end of the preceding year, when filing CIT tax return.
  • Investment income, dividends and interest are subject to the tax on movable capital (IRCM).
  • The IRCM on such income is generally withheld at a rate of 20% for both individuals and resident and nonresident corporate bodies.
  • The IRCM is a final tax.
  • A 10% withholding tax is imposed on royalties paid to nonresidents. The rate is 20% with countries not having a tax treaty with Gabon
  • Gains on the transfer of assets held by individuals are taxed at a rate of 20%. This tax is a final tax.
  • The family coefficient system (Personal allowances table) is used to reduce the general income tax calculated for families

 What are the PIT regimes?

  • Self-employed individuals engaged in commercial activities calculate taxable income in the same manner as companies.
  • Taxable income equals the difference between income received, including capital gains, and expenses paid during the calendar year.
  • The accrual method of accounting is used.

Tax regime for PIT and CIT are:

Regime

Revenue (XAF)

Discharge tax

Less than or equal to 30 million

Simplified

More than 30 million and less than 60 million

Actual earnings

Over 60 million

 What are business deductions?

Individuals engaged in commercial, professional or agricultural activities, can get their expenses deducted under specific conditions. Below are the major ones

  • General expenses incurred for business purposes
  • Voluntary pension fund premiums not exceeding 10% of taxable income before deduction of deductible charges
  • Interest on loans and debts with some restrictions
  • Life insurance premiums not exceeding 5% of taxable income before deduction of deductible charges
  • Mandatory and non-mandatory social contributions up to certain limits

PIT general Rates

Taxable income

Tax rate

Tax due

Cumulative tax due

XAF

%

XAF

XAF

First 1,500,000

0

0

0

Next 420,000

5

21

21

Next 780,000

10

78

99

Next 900,000

15

135

234

Next 1,560,000

20

312

546

Next 2,340,000

25

585

1,131,000

Next 3,500,000

30

1,050,000

2,181,000

Above 3,500,000

35

-

-

Personal allowances table

Family status

Number of allowances

Single, divorced or widowed individuals with no children

1

Married individuals with no children, and single or divorced individuals with one child

2

Married individuals with one child, and single or divorced individuals with two children

2.5

Married individuals with two children, and single or divorced individuals with three children

3

Married individuals with three children, and single or divorced individuals with four children

3.5

Each additional child (up to six children)

0.5

  • Income is taxed under a family coefficient system, which adjusts the amount of income subject to the progressive tax rate table according to the number of family members.
  • Taxable income is divided by the applicable number of family allowances, and the final tax liability is calculated by multiplying the tax computed for one allowance by the number of allowances claimed.

Others PIT Related

Tax

Basis

Rate

Contributor

Periodicity

Supplementary tax

Gross salary + Benefit in Kind

5%

Employee

Monthly

National Housing Fund

Gross salary + Benefit in Kind

2%

Employer

Monthly

Professional Training Contribution

Gross salary + Benefit in Kind (Max 18.000.000) per year

0,50%

Employer

Monthly

  • A 20% withholding tax is imposed on remuneration paid to foreigners for activities performed or services rendered in Gabon
  • 5% Withholding tax on local service providers that are not subject to VAT; tax based on the total amount of the invoice.
  • Amounts paid to casual or interim workers also are subject to the 9.5% withholding tax.

Dernière mise à jour: 29 Juillet 2021

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