Did you know that the tax levied on incomes varies depending on the country? Are you a resident of Gambia or thinking of emigrating to Gambia? Are you interested in knowing what the income tax rate in Gambia is? Then this article is the answer to all your questions.
This article will give you all you need to know about income tax rate in Gambia, including the current income tax rate, and other economic indices of Gambia like the GDP etc. We will like to begin with a brief introduction of the country known as The Gambia.
Gambia is which is known as The Gambia or officially as the Republic of The Gambia is an African country located in West Africa. The country is bordered on the west by the Atlantic Ocean and its nearest neighbor is sengal which surrounds it. Based on a census conducted in April 2013,
The Gambia is said to have a population of 1,857,181 people. With an area of 10,689 square kilometres, The Gambia is often referred to as the smallest country in mainland Africa because of its land mass. Its capital is Banjul.
What is the GDP of Gambia?
The total nominal GDP of Gambia based on a 2020 estimate is $1.810 billion while its nominal GDP per Capita is $746.
What is Income Tax?
Income tax in Gambia is the tax levied each tax year on the chargeable or taxable income of residents and non-residents.
What is Taxable Income?
Taxable Income = Gross Income (except non-taxable income) – allowable deductions.
What do we mean by residents and non-residents?
For individuals, residents refers to anyone who resides in Gambia, or anyone who is present in Gambia for up to 183 days of a tax year, or anyone who is an employee of The Government overseas either in any of their consulates or embassies or any of the intrsests (e.g Missions) outside the Country.
While non-residents are those who don’t reside in Gambia or are present for up to 183 days of the tax year or are employed by the Gambian government abroad. Non-residents are charged the same tax rates as residents, but it is only on the income they earn in Gambia, any foreign income i.e income earned from any business outside the country is not taxed.
For a company or organization, a company or organization is considered resident if the company or organization was incoporated and thus binded by the business laws of Gambia or if the control and management of the company or organization is exercised in Gambia.
What are non-taxable Income?
In Gambia there are several incomes or allowances that are considered tax exempt and as such they are not included in the chargeable income when calculating your income tax for that year. These non-taxable income include
- Scholarship or grants provided for the payment of tution
- Salary of a non-citizen who earns salary in Gambia (this is based on international treaty)
- Foreign income of non-citizens
- The official salary of the President or Vice President
- Official salary of a non-commissioned officer of the Gambian Armed forces
- Retirement savings, Fringe Benefits, Pensions etc.
What is the current Income Tax Rate in Gambia?
The current income tax rate in Gambia currently stands at 30% of your chargeable or taxable income.
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