Tax Residency in Gabon
1. Criteria for Determining Tax Residency in Gabon
According to Article 1 of Gabon's General Tax Code (GTC), an individual is considered a tax resident if they meet any of the following criteria:
- Physical presence in Gabon for more than 183 days in a calendar year.
- Establishment of a habitual residence in Gabon.
- Exercise of a professional activity in Gabon.
For companies, tax residency is determined based on their registered office or place of effective management.
2. Impact of International Tax Treaties on Tax Residency Criteria
Gabon has entered into several double taxation agreements (DTAs) with other countries. These DTAs may modify or provide exceptions to the standard criteria for tax residency.
Key Provisions in DTAs
DTAs typically include provisions that address tax residency, such as:
- Tie-breaker rules: These rules determine which country has the primary right to tax an individual or entity that is considered a resident of both countries under their respective domestic laws.
- Specific criteria for determining residency: DTAs may provide specific criteria for determining residency that differ from the criteria in domestic law. For example, some DTAs may consider an individual to be a resident of a country if they have a permanent home there, even if they do not spend more than 183 days in that country.
Rationale for Treaty-Specific Modifications
Treaty-specific modifications to tax residency criteria aim to:
- Prevent double taxation by ensuring that individuals and entities are not taxed on the same income in multiple jurisdictions.
- Facilitate cross-border trade and investment by providing clarity and certainty regarding tax residency.
- Promote cooperation between countries in tax matters.
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