Some of the taxes include Capital Gains Tax, Payroll Tax, and Withholding Tax on Contracts, Fringe Benefits Tax, Rental Income Tax, Individual Business Income Tax, Corporation Tax and Value-Added Tax.
Capital Gains Tax: Capital Gains Tax is a tax imposed on the disposal of a capital asset, which includes land, machinery, shares, interest etc., but excluding depreciable assets and stock in trade.
In simple terms, capital gains tax means the tax imposed on the income derived from the disposal of one’s capital asset, and any person who disposes a capital asset in The Gambia is liable to pay the tax.
Payroll Tax: Also called Expatriate Quota Tax, this a tax imposed on an employer for employing non-Gambians in a tax year.
All employers of non-Gambian citizens are liable to payroll tax and are not supposed to deduct or recover the tax paid from the employees.
A self-employed non-Gambian who operates a small indigenous business in The Gambia is not liable to payroll tax.
For Withholding Tax on Contract payments: This is a payment levied on contractors and subcontractors for carrying out of work supply of labour or materials, and or provision of technical services.
A taxpayer who retains the services of a contractor/subcontractor should withhold the tax, and remit it to GRA. The tax is paid by the contractor/subcontractor, but the contractee acts as a collection agent for GRA.
Fringe Benefits Tax: These are payments in kind to employees such as housing, motor vehicle, loans, household personnel, debt waiver, entertainment, property, life insurance etc provided by employers to employees. It is imposed on and payable by employers.
Rental Income Tax: This is imposed on a taxpayer who has a taxable rental income for the year. In other words, any rent income received by a taxpayer from a rented property is subject to the payment of rental income tax. Rental income tax is accounted for on a cash basis.
There are two different types of Rental Income Tax: Residential Rental Income Tax and Commercial Rental Income Tax. Residential property does not include hotels, guesthouses, inns, boarding houses or similar establishments.
Individual Business Income Tax: This is tax charged on the earnings of an individual and their businesses other than companies and partnerships. This could be based on the turnover or net profits.
All individuals engaged in economic or income-generating activities in The Gambia are required to be registered, and pay individual business income tax.
Corporation Tax: This is tax charged on earnings of companies, partnerships or bodies of trust. This could be based on the turnover or net profits. All companies, partnerships or bodies of trust operating in The Gambia are liable to pay corporation tax.
The GRA stall at the trade fair also issues the Taxpayer Identification Number, TIN, to people who are interested in acquiring a TIN.
The GRA stall is also there for foreign stall owners to pay their tax on the goods they brought to The Gambia.
It also provides a one-on-one question and answer session for those who need clarification on the misconceptions regarding tax payment in The Gambia.
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