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5.6. Qualification of Specific Income Categories for Tax Purposes

Dividend Income

Dividend includes any distribution of profits by a company to a shareholder or by a partnership to a partner.

Royalty Income

Royalty income includes payment for

(a) the use of or right to use any patent, invention, design or model, secret formula or process, trademark, or other like property or right;

(b) the use of, or right to use any copyright of a literary, artistic, or scientific work (including films or video tapes for use in connection with television or tapes in connection with radio broadcasting);

(c) the receipt of, or right to receive, any visual images or sounds, or both, transmitted by satellite, cable, optic fibre or similar technology in connection with television, radio, or internet broadcasting;

(d) the supply of any technical, industrial, commercial or scientific knowledge, experience, or skill;

(e) the use of or right to use any industrial, commercial or scientific equipment;

(f) the supply of any assistance that is ancillary and subsidiary to, and is furnished as a means of enabling the application or enjoyment of, any property or right mentioned in paragraphs (a) to (e); or

(g) the disposal of any property or right referred to in paragraphs (a) to (e).

Rental Income

Rent income includes consideration received for the use or occupation of, or the right to use or occupy any land or building, including any premium paid for the same.

Fees for Technical Services

Technical service fee includes payment for rendering of managerial, technical or consultancy service, including the service of technical and other personnel, but does not include employment income.

Income from Natural Resource

Income from natural resource includes:

  • an amount (including a premium or like amount) paid as consideration for the right to take minerals or a living or non- living resource from land; or
  • an amount calculated in whole or part by reference to the quantity or value of minerals or a living or non-living resource taken from the land.

Capital Gains

Gains derived from the disposal of a capital asset is known as capital gains. Capital asset, in case of a non-resident, includes:

  • any land in the Gambia, or any building or other structural improvement to land located in the Gambia;
  • any plant, machinery, fixture or equipment located in the Gambia;
  • any share, security, or other financial asset issued by a resident or non-resident person in the Gambia, (iv) any interest in a resident partnership; or
  • any right, title, or interest in an asset referred above;

but does not include a depreciable asset or stock-in-trade.