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INCOME TAX - PAYE

Income Tax - PAYE

Employment income tax is charged on employment earnings through the Pay As You Earn (PAYE) system. Employment income is any profit or gain arising from employment. It includes wages, salaries, bonuses, leave pay, overtime payments, fees and allowances, commissions, termination and any other form of supplemental payment. This includes payment of all types, including cash, cheques, and direct bank deposits to domestic of foreign account.

Any employee who earn incomes above D1, 500 per month or above D18,000 annually arising from employment in The Gambia is subjected to employment income tax. Also, all residents in The Gambia who earns employment income outside the country are liable to pay employment income tax, subjected to the foreign source rule.

The employment income tax rates are as follows;

 

Number

Annual Taxable Income

Rate

1

D0 – D18,000

0%

2

D18,001 – D28,000

5%

3

D28,001 – D38,000

10%

4

D38,001 – D48,000

15%

5

D48,001 – 58,000

20%

6

Above D58,000

30%

The employment income tax liability for any employment income earner is the applicable rates multiplied by the total employment income. No deductions are allowed. GRA has table available for employers to use to determine the proper amounts to withhold. For example, if Mr. X earn employment income of D50,000 per month, then his income tax liability is as follows.

 

Taxable

Employment

Income

Tax Rate

Tax Liability

D1,500

0%

D0.00

D833

5%

D41.67

D833

10%

D83.33

D833

15%

D125

D833

20%

D166,67

D45,167

30%

D13,550

Total

 

D13,966.67

For employment incomes above D58,000 per annum, the monthly tax liability could be computed using the following formula: Employment Income Tax Liability = (Gross Employment Income -D58,000) * 30% + 5,000)/12.

Employment income earners are not required to file returns unless they have other sources of taxable income. However, their employers are required to submit a monthly return and pay the tax withheld to GRA. The closing date for payment of PAYE is the 15th of the following month.

The payment of withheld employment income and the filling of returns are the responsibility of the employer and not the employee. Employment Income Tax (PAYE) returns are submitted to and payments made at the nearest DTD Tax Office. Payments can also be made at any of 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 with an objection through to an appeal to the Tax Tribunal and then Court of Appeal where necessary.

Employees are not required to file employment income tax returns if they have only one employment and if that is their only source of income. The following are exempted from employment income tax;

  • Employment income of the President of the Republic of The Gambia
  • Non – Commission officers of The Gambia Armed Forces 
  • Foreign diplomats 
  • Government pensioners
  • Those exempted by the President and approved by the National Assembly 
  • An employee earning employment income in a foreign country and is already taxed in that country.

All other employees are deducted the employment income tax (PAYE) and the employer should file returns and make the necessary payments.

Employment income tax (PAYE) is a final tax unless the employee has other source of income.

  • Failure to file Tax return or other documents 
  • Giving false or misleading information 
  • Failure to notify the CG for a change in business or address 
  • Failure to recover tax from a person holding money on behalf of a taxpayer 
  • Improper use of TIN 
  • Obstructing Revenue Officers in the performance of their duty.
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