Tax on property income in Gambia

May 12, 2017

INDIVIDUAL TAXATION

Nonresidents are taxed on their Gambian-source 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.

INCOME TAX

RENTAL INCOME
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)

PROPERTY TAX

There are no property taxes in Gambia.

CORPORATE TAXATION

INCOME TAX

Income and capital gains earned by companies are taxed at a flat rate of 31% levied on the net income, or 1.5% 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 2.5% turnover tax rate, instead of a 1.5% turnover tax, is levied on companies with unaudited accounts.

CAPITAL GAINS
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.

  

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