The Domestic Taxes Department is responsible for the collection of all taxes levied on income from employment or business activities. The department is also responsible for the issuing of clearance certificates namely; clearance for the purpose of tax payments, vehicle clearance for the purpose of paying road tax and vehicle licence. It is also responsible for registration of taxpayers and the issuance of Taxpayer Identification Numbers (TIN).
The department is headed by a Commissioner who is assisted by three Deputy Commissioners. There are three units in the department each headed by a Deputy Commissioner and assisted by Tax Managers in the day to day management and supervision of the operations of the units.
The three units in the Department are:
The Large Taxpayers Unit (LTU): This unit enables the Department improve revenue performance and render dedicated and central services to its taxpayers with high turnover. As more than half of the Department’s revenue is derived from its large taxpayers, it was deemed necessary to set up this unit so as to better take care of this group of taxpayers.
This unit is a one-stop centre where large taxpayers can fulfil their tax obligations for all domestic tax matters. The office is located at the Kanifing Revenue Office (KRO).
The Tax Office Operations (TOO) Unit: This unit deals with small and medium taxpayers, (those not under the LTU). The Unit consists of three Sections which are as follows:
Banjul Tax Office
Kanifing Tax Office and
The Branch Offices
Banjul Tax Office: This office takes care of taxpayers i.e. companies, departments, institutions or individuals located within Banjul.
Kanifing Tax Office: This office take care of taxpayers i.e. companies, departments, institutions or individuals located within the Kanifing Municipality
The Branch Offices: These are the divisional tax offices spread across the country. There are eight Branch offices altogether;
Barra Tax Office: Takes care of taxpayers within the lower part of the North Bank Region
Farafenni Tax Office: Takes care of taxpayers within the upper part of the North Bank Region.
Basse Tax Office: Takes care of taxpayers in the Upper River Region.
Brikama Tax Office: Takes care of taxpayers in the West Coast Region.
Brusubi Tax Office: Is a sub-office supporting the Brikama Tax Office because of the large number of taxpayers in the region.
Brikamaba Tax Office: Takes care of taxpayers in the Central River Region.
Soma Tax Office: Takes care of taxpayers in the Lower River Region.
Tallinding Tax Office: Take care of taxpayers within the Eastern and Central part of the Kanifing Municipality
Headquarters Function Unit: The Headquarters Functions Unit is the technical arm of the department meant to provide technical support to the operational units.
Among the roles of the Unit are;
Supporting and monitoring the operational activities of the operational units
Setting standards for performance measurement
Handling policy issues of the Department in consultation with the Legal Unit
Monitoring taxpayer compliance in conjunction with the Compliance Unit and
Conduct taxpayer education/sensitisation together with the GRA Taxpayer Education Unit.
WHAT IS TAX?
Tax is a compulsory payment, levied on qualified persons, companies or partnerships by a government on their;
Business, employment and other incomes
Property and other assets or
Good and services
as provided by law, e.g. the Income & Value Added Tax Act 2012, Stamp Duty Act etc.
The department is responsible for administering the under mentioned taxes and non-tax revenues.
This comprise of both personal income tax and corporate income tax levied on individuals, companies or partnerships.
Corporate – Is paid by companies or partnerships on their turnovers/sales or profits. This tax is paid quarterly during the year (installment or quarterly payments) and the final tax payable within three months after the end of the tax year. The annual return is also due within three months after the end of the tax year.
Personal – Paye (Pay As You Earn) – This is the income tax levied on the employment incomes of individuals. It is calculated using the 1st Schedule as stated by Income and Value Added Tax Act 2012.
Business Income – Is levied on the income of individual businesses and calculated using the higher of tax on turnover/sales or the tax on profit using the First Schedule rates. This tax is paid quarterly during the year (by installment or quarterly payments) and the final tax payable within three months after the end of the tax year. The annual return is also due within three months after the end of the tax year.
VALUE ADDED TAX (VAT)
This is a modern indirect tax which is levied on the following;
Taxable supply of goods
Taxable supply of services
CAPITAL GAINS TAX
This tax is imposed on individuals, companies or partnerships who have disposed off capital assets. Capital assets according to the Act include land, building or structural improvement to land, plant, machinery, fixtures or equipment, share, security or other financial assets or interest of a company or partnership. The tax liability payable is the higher of 15% percentage of the gains or 5% of the consideration received (companies and partnerships 25% and 10% respectively) and is payable within 15 days after the sale of the asset.
FRINGE BENEFIT TAX
Fringe benefit is benefit in kind provided by an employer to the employee. The fringe benefit tax is imposed on every employer who provides benefits like housing, car, health, telephone etc for its employees. The amount of fringe benefit tax paid is allowed as a deduction in computing the chargeable income of the taxpayer. The fringe benefits tax rate is 35% of the grossed-up fair value of the benefits provided. The tax is payable by the employer and not the employee.
RESIDENTIAL RENT TAX
Residential rental income is income earned from letting off a residential property. The residential rental income tax rate is 10% of the gross rent received and it is payable quarterly. The annual return and final tax (if any) are due within three months after the end of the tax year.
COMMERCIAL RENT TAX
Commercial rental income is income earned from letting off property for commercial use. The tax is imposed on the gross amount of the rent received at the rate of 15% and is paid quarterly. The annual return and final tax (if any) are due within three months after the end of the tax year.
PAYROLL TAX (EXPATRIATE QUOTA) - Also known as Expatriate Quota tax and administered under the Payroll Tax Act is paid by the employer of a non-Gambian employee and is not recoverable by the employer from the employee. It is an annual payment made once per employee as follows: ECOWAS nationals D10,000 and Non-ECOWAS nationals D40,000. Self-employed non-Gambian individuals are not liable to pay the tax.
POOL & BETTING TAX
This tax is levied on gaming and gambling winnings on the gross amounts won. The tax rate is 10% of the gross winnings and it is payable monthly. It is the duty of the gaming and gambling operator to withhold the tax and pay it to the Domestic Taxes Department.
This comprise of the following:
Dividends – A company paying dividends to its shareholders is required to withhold tax from the gross amount of the dividends paid at the rate of 15%.
Interest - Resident companies or partnerships paying interest to individuals other than financial institutions are required to withhold tax from the gross amounts of interest at the rate of 15%.
Contracts – A person who retains the services of a contractor or a sub-contractor to carry out work, supply materials or provide a service is required to withhold tax from the gross amount paid to the contractor or sub-contractor at the rate of 10%.
Responsibility to withhold lies with the person paying out the dividend, interest or the retainer of the services of the contractor or sub-. The tax is payable monthly and the declaration (withholding tax schedule) is due within two months after the end of the tax year.
The following are Non Tax Revenues collected by the Department.
GSM Licences & Spectrum Fees – Includes different fees and/or charges namely:
Stamp Duty – Fee charged for the stamping of legal documents for registration with the Attorney General’s Chambers and charges depend on the type of document.
The department is also assigned the responsibility for collecting the following fees/charges:
Vehicle license fees, road tax and car parking fees
Number plate fees
Drivers’ license fees (both national and international)
Fire arms license fees
Miscellaneous license fees such as learners license fees, police reports fees, certificate of character fees etc)
Passport & National Identification cards fees