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8.2.1. Corporate/Profit Taxes

Gabon applies a territorial system whereby only income derived through an establishment in Gabon is taxable therein. Non-resident companies with a branch or PE in Gabon are taxable on income derived from Gabon. In that case, the tax is determined and due in substantially the same way as for resident companies. Moreover, the after-tax profits are subject to a branch remittance tax at the rate of 20% (increased from 15% by Finance Law 2016). The branch remittance tax rate is reduced to 10% if the head office is established in a country which has a tax treaty with Gabon. However, if the relevant treaty provides for a lower rate or excludes the application of the branch remittance tax altogether, then the treaty’s rules prevail.

Indirect Transfer of Assets

Capital gains derived by a non-resident from the indirect transfer of shares in a Gabonese company are deemed to represent a transfer of Gabonese assets and are assessable to tax in Gabon. The company whose shares are indirectly transferred is required to notify the tax authorities within one month from such transfer and is jointly liable for the payment of the tax by the non-resident seller.

Non-resident without a branch or PE are subject to withholding tax on specified Gabonese-source income. The following table shows the effective corporate tax rates in the local country for the current year, past years and future years.