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5.2. Treatment of Foreign Profits / Losses

Under the territoriality principle, business income realized through an enterprise operating outside Gabon is not taken into account for Gabonese tax purposes nor are losses pertaining to such enterprise.

A worldwide tax liability applies in the case of passive investment income, such as dividends, interest and royalties.

Capital gains on transfer of assets between group member companies are liable to corporate income tax at a final 20% rate

Undistributed income of foreign subsidiaries of a Gabon resident company is not taxed.