Gabon: Finance Law for 2013 – direct taxationFebruary 7, 2013
The Finance Law for 2013 was promulgated by the President of the Republic on 8 January 2013.
Details of the Finance Law, which, unless otherwise indicated, apply from 1 January 2013, are summarized below.
- The standard corporate tax rate is reduced as follows:
- From 35% to 30% for companies other than those operating in the oil and mining sectors
- From 35% to 25% for tourism companies and companies holding intellectual property rights.
- The corporate tax rate is increased from 20% to 25% for companies licensed to operate in land development and the building of low-rent housing.
- The minimum participation threshold required to qualify as a group-member company under the group tax regime is increased from 10% to 50%.
- The allowable deductions for the following expenses, charged by non-resident persons, are capped at 10% of the taxable profits:
- Head office expenses
- Technical, financial and accounting assistance
- Commissions and fees
- Interest and other ancillary income
- Guarantee fees.
The limitation does not apply to technical assistance fees and surveys connected to the assembly of factories in Gabon.
- Newly created tourism companies must invest at least FCFA300 million (previously FCFA800 million) in order to enjoy an exemption during the first three years of their activities.
- A two-year exemption from the minimum lump-sum tax is granted to newly created companies.
- The special tax regime for tourism investments under Ordinance No. 2/2000/PR of 2 February 2000 is revised.
- Interest on housing savings accounts and other savings accounts are exempt from tax up to a maximum savings amount of FCFA10 million.
- A 15% withholding tax is introduced on gains from gambling exceeding FCFA5 million.
- There is a special tax regime for oil subcontractors.
- Companies subject to the special tax regime for oil subcontractors are forbidden from operating any activities other than those for which they have been licensed.
- The election to the special tax regime is irrevocable for a period of two years and may be renewed for two additional years. The overall period during which a company is entitled to this regime may not exceed four years.
- Employees of oil subcontractors are considered as Gabon resident and are liable to personal income tax under the common rules.
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