Gambia Revenue Authority Collecting Revenue for National Development

Press Release for Payment of Tax on Entertainment Events

GAMBIA REVENUE AUTHORITY (GRA)

 PRESS RELEASE FOR PAYMENT OF TAX ON ENTERTAINMENT EVENTS

GRA wishes to remind all taxpayers and the public that entertainment events organised locally or internationally are subject to income and value added tax.  The income tax liability is imposed on both the promoter of the event and the artist (local or foreign), whilst the VAT is imposed on the consumer.

For the promoter of the event, the income tax shall be paid in accordance with the normal tax regime which is a quarterly payment obligation, an annual filing/declaration and final payment obligations at the end of the year. 

The Promoter is also obligated to register for VAT under Section 172(14) of the Income & Value Added Tax Act, 2012 and comply with all the VAT obligations, including registration, proper invoicing/receipting, proper record keeping and monthly filing of VAT returns.

For the artist or musician (local or foreign) the tax shall be withheld by the promoter and paid to the GRA on their behalf. The applicable withholding tax rates are as follows:

1. Local artist or musician – a withholding tax on the gross amount due to the artist or musician at the rate of 10% as specified under section 89(3) of the Income & Value Added Tax Act, 2012.
2. Foreign or international artist or musician – a withholding tax on the gross amount due to the artist or musician at the rate of 15% as specified under sections 11 and 92 of the Income & Value Added Tax Act, 2012.

It is important for all Promoters to note that failure to withhold tax as stated above or failure to remit tax withheld is an offense under section 95 of the Income & Value Added Tax Act, 2012.  Similarly, failure to register for VAT will result in compulsory registration under Section 172(15).

In such cases, the promoter shall be held personally liable for the tax not withheld and the VAT not charged.  In addition, they will be charged penalties for late filing of Tax Returns, under Section 230, failure to pay tax withheld or VAT collected, under Section 231, failure to register for VAT, under Section 232, and failure to maintain proper records, under Section 233.   They will also be charged late payment interest in accordance with Section 229 of the Income & Value Added Tax Act, 2012.

All promoters are strictly advised to comply with this legal requirement to avoid any action or disruption of their event by the GRA, as enforcement could start at the event if non-compliance is detected or realized.

GRA, Collecting revenue for national development.