Gabon

Individual - Income determination

Last reviewed - 16 September 2020

Employment income

The IRPP is calculated on the net global revenue earned by the taxpayer during the course of a calendar year (1 January thru 31 December).

The net global revenue is equivalent to the total net revenue of the following types of incomes:

  • Land income.
  • Industrial, commercial, and craft profits.
  • Agricultural returns.
  • Non-commercial profits.
  • Salaries.
  • Stock and shares profits.

The IRPP is due by the head of the family for one’s own revenues, those of one’s spouse, and of one’s dependent children.

Regarding salaries, the taxable income includes all cash remuneration, allowances, acquisition gain related to the allocation to employees of free shares on preferential basis and bonuses paid to employees. However, some bonuses listed in the Gabonese General Tax Code are exempted from the tax, provided they do not exceed the ceiling of XAF 4 million per year.

Benefits in kind

Benefits in kind, such as housing, electricity, water, domesticity, and food, are taxed according to a schedule of deemed values, as follows:

  • Housing (free accommodation): 15% of the basic net salary.
  • Housing allowance: The portion of the allowance exceeding XAF 250,000 or 40% of the gross monthly salary is included within the taxable revenue.
  • Electricity and water: 5% of the basic net salary.
  • Domesticity: 5% of the basic net salary.
  • Food: 25% of the basic net salary, up to a limit of XAF 120,000 per person and per month.

Expatriate tax concessions

Travel expenses incurred by the employer for the holidays of expatriates and their family are exempted from the IRPP, up to the limit of one direct air ticket per year from their employment location to their country of origin.

Business income

Allowances for business expenses are exempted from the IRPP, provided that they are used according to their subject and that they are justified.

Capital gains

Capital gains are not generally subject to IRPP, but they may be subject to capital gains tax. See Capital gains tax in the Other taxes section for more information.