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10. INCENTIVES AND SPECIAL REGIMES

The Gambia Investment and Export Promotion Agency ('GIEPA') governs the law related to investment incentives available to investors in the Gambia. It is established with the aim to promote investments in the Gambia by providing various incentives, protection against compulsory acquisition, settlement of disputes and the transfer of funds.

There are two separate investment schemes namely, the Special Investment Certificate ('SIC') and Export Promotion Zone ('EPZ') schemes. No investor is allowed to take benefits of both schemes. Hence an investor can only be either a SIC license holder or an EPZ license holder.

Special Investment Certificate ('SIC')

The investors are required to invest a minimum of USD 250,000 in specified 'priority sector and priority area' and obtain SIC from relevant authorities to avail incentives applicable to special investment status.

Incentives under SIC:

  • Newly established investment undertaking is eligible for
    • tax holiday / exemption from corporate tax ('CIT'), minimum alternate tax, withholding tax and tax on dividends and accelerated depreciation, subject to certain conditions, for a period of 5 years in case of investments made in priority sector and for 8 years from the date of commencement of operations in case of investments made in priority area
    • Waiver from sales tax on imports of manufacturing plant, construction material and spare parts for 5 years from the date of signing of the investment agreement; and raw material and intermediate inputs for 5 years from the date of the commencement of operation and the prescribed products under the Custom and Excise Acts.
  • Existing undertakings in priority investment category that undertakes an expansion project of at least USD 200,000 is eligible for a sales tax waiver for its imports for a period of 1 year.

Export Processing Zones ('EPZ')

EPZs are specific areas identified by the GIEPA for export-oriented investment enterprises. The aim of an EPZ is to provide a conducive business environment for enterprises through incentives, simple export procedures, facilitation in license and permits etc.

Undertakings in EPZ are required to export at least 80% of their output.

Undertakings in EPZ are eligible for a tax holiday for a period of 10 years and are also granted below tax reliefs:

  • Import or excise duty and sales tax on goods produced within or imported into an EPZ, unless the goods are entered for consumption into the customs territory
  • Import duty on capital equipment
  • Withholding tax on dividends
  • Municipal tax

Incentives for Export Promotion

The undertaking is required to be located outside EPZ and export a minimum 30% of its output.

Incentives and facilities under export promotion are –

  • Reduced CIT by 10% for a period of 5 years
  • Few facilities are also provided by GIEPA
    • Participation in training courses, seminars and workshops for employees
    • Export market research provided by the GIEPA
    • Advertisement and publicity campaigns in foreign markets provided by GIEPA
    • Product design and consultancy provided by GIEPA

International Business Companies ('IBC')

An IBC incorporated in the Gambia is eligible for the following benefits:

  • Exemption from CIT on income derived from business outside of the Gambia
  • Payments to non-resident individuals by IBC in respect of dividends, interest, rents, royalties, compensations are tax exempt
  • There are no capital gains taxes, inheritance taxes or death duties to be paid by an IBC and its directors in the Gambia