Global Tax Alert | 2 February 2017

Gabon's Finance Act 2017 enters into force

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Gabon’s Finance Act 2017 (The Act) was published in the Government Gazette of 9 January 2017 (Special Edition No. 331 Bis) and is now in force. This Alert highlights the key features of the Act as follows:

  • The General Tax Code incorporates the latest Organisation for Economic Co-operation and Development Base Erosion and Profit Shifting Action Plan recommendations.
  • Transfer pricing documentation must be filed by 30 April of each year. The minimum penalty for non-filing of the transfer pricing documentation is increased from XAF5 million to XAF65 million (approx. US$8196 to US$106,550).
  • The deadline for the filing of the annual Corporate Tax Return and the annual Return of Employees is harmonized to 30 April of each year.
  • All companies with gross income of more than XAF1.5 billion (approx. US$2.5 million) will need to file their returns electronically.
  • The Act introduces a withholding tax of 5% on gross income derived from immovable properties. It will be the duty of the Real Estate Agency, the person who looks after the immovable property or the ”Civil Immovable Property Partnership” to collect the tax.
  • A training levy of 0.5% of the annual payroll cost is applied as of 1 January 2017.
  • The Act introduces, as of 1 March 2017, a Special Social Security Levy (SSSL) of 1% of the turnover of all individuals and corporates deriving taxable income in Gabon with gross income of more than XAF30 million (approx. US$49,000). The SSSL will not be deductible for the calculation of chargeable income.
  • The Act abolishes the ROAM (Special National Health Contribution) from 1 March 2017.
  • The Act also renews the tax amnesty scheme.

For additional information with respect to this Alert, please contact the following:

FFA Juridique et Fiscal, Libreville
  • Nicolas Chevrinais
    +241 01 74 21 68
    nicolas.chevrinais@ga.ey.com
  • Ryan Allas
    +241 05 30 10 67
    ryan.allas@ga.ey.com
  • Jerome Obele Okoura
    +241 05 30 10 13
    jerome.obele.okoura@ga.ey.com
Ernst & Young Advisory Services (Pty) Ltd., Africa ITS Leader, Johannesburg
  • Justin Liebenberg
    +27 11 772 3907
    justin.liebenberg@za.ey.com
Ernst & Young LLP (United Kingdom), Pan African Tax Desk, London
  • Leon Steenkamp
    +44 20 7951 1976
    lsteenkamp@uk.ey.com
  • Byron Thomas
    +44 20 7951 4144
    bthomas4@uk.ey.com
  • Gonçalo Dorotea Cevada
    +44 20 7951 2162
    gcevada@uk.ey.com
Ernst & Young LLP, Pan African Tax Desk, New York
  • Silke Mattern
    +1 212 360 9707
    silke.mattern@ey.com
  • Dele A. Olaogun
    +1 212 773 2546
    dele.olaogun@ey.com
  • Jacob Shipalane
    +1 212 773 2587
    jacob.shipalane1@ey.com

EYG no. 00444-171Gbl