Farley And Partners

INCOME TAX

Income Tax

Interest income tax is imposed on a taxpayer who earns interest on savings, deposits and other financial products or instruments that earns interest.

Any resident taxpayer who earns interest income is liable to pay interest income tax. Equally all resident taxpayers are liable to withhold interest income tax on all interest payment to non-residents

The interest income tax is 15% of the gross amount of interest earned.

The interest income tax liability for any interest earned is 15% of the interest earned. No deduction are allowable and the interest income cannot be reduced by any loss.

For example, if Mr. X earns interest income of D150000 in a tax year, then his interest income tax liability will be D22500. The taxpayer paying the interest will deduct the D22500 from the D150000 and pay Mr. X D127500 and issue him a Certificate of interest Income Withholding Tax Certificate. Mr X is to attach this Certificate to his declaration to GRA covering the period.

Taxpayers paying interest are required to submit annual withholding tax statement in the prescribed form and pay the tax withheld to GRA. Interest income earners are not required to file returns. The closing date for file returns. The closing date for filing interest income withholding tax statement is 3 months after the end of the tax year. The closing date for payments of withheld interest income tax is the 15th of the month following the interest payment.

Taxpayers paying interest are required to submit annual withholding tax statement in the prescribed form and pay the tax withheld to GRA. Interest income earners are not required to file returns. The closing date for file returns. The closing date for filing interest income withholding tax statement is 3 months after the end of the tax year. The closing date for payments of withheld interest income tax is the 15th of the month following the interest payment.

Interest withholding tax statements are submitted and payments made at the nearest GRA tax office. Payment can also be made at the GRA’s designated partner banks.

Taxpayers not satisfied with any tax decision can, within 30 days, object to such a decision through the Objection and Appeal process. The process starts at the GRA (Domestic Taxes Department) through to the Tax Tribunal and then to the Court of Appeal.

The following interest incomes are exempted from interest income tax :

  • Interest income on government debts
  • Interest income on savings at the Gambia Post Office
  • Interest earned by financial institutions

No other taxpayer is exempted from filing statements or withholding interest income tax.

YES. Interest income tax is a final tax. The net interest received will not be subjected to further taxation.

The following are offences punishable under the Income and Value Added Tax Act 2012.

  • Failure to withhold and remit interest income tax
  • Failure to lodge interest withholding income tax statement
  • Giving false or misleading information
  • Improper use of TIN
  • Obstructing revenue officers in the performance of their duty.
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