For individuals earning income in Gabon, understanding the 2025 individual income tax framework is critical for effective planning. This article explains Gabon’s progressive tax system, including current brackets, applicable surtaxes, and key planning points for XAF (Central African CFA franc) taxpayers this year.
Overview of Gabon’s Progressive Income Tax Structure
Gabon applies a progressive individual income tax system. Taxation is assessed on income, with increasing rates across several brackets. The 2025 brackets are denominated in XAF (Central African CFA franc). For an international audience, as of early 2025, 1 USD ≈ 610 XAF (rates may fluctuate; always check with official sources).
Tax Brackets and Rates for 2025
| Income Bracket (XAF) | Income Bracket (USD) | Rate (%) |
|---|---|---|
| 0 – 1,500,000 XAF | $0 – $2,460 | 0% |
| 1,500,001 – 1,920,000 XAF | $2,460 – $3,148 | 5% |
| 1,920,001 – 2,700,000 XAF | $3,148 – $4,426 | 10% |
| 2,700,001 – 3,600,000 XAF | $4,426 – $5,902 | 15% |
| 3,600,001 – 5,160,000 XAF | $5,902 – $8,459 | 20% |
| 5,160,001 – 7,500,000 XAF | $8,459 – $12,295 | 25% |
| 7,500,001 – 11,000,000 XAF | $12,295 – $18,033 | 30% |
| Over 11,000,000 XAF | Over $18,033 | 35% |
All individuals are taxed based on their total annual income. As illustrated, income up to XAF 1,500,000 ($2,460) is not taxed, making Gabon’s system favorable to low-income earners, while rates increase substantially for higher-income individuals.
Complementary Tax on Salaries (TCTS)
In addition to the main progressive income tax, Gabon applies a complementary tax on salaries (TCTS). For 2025, this surtax is charged at 5% on all salaries, indemnities, and emoluments paid to the taxpayer. The first XAF 150,000 ($246) per month is exempt from this surtax.
| Type | Exempt Threshold (XAF/month) | Exempt Threshold (USD/month) | Surtax Rate (%) |
|---|---|---|---|
| Salary, indemnities, emoluments | 150,000 XAF | $246 | 5% |
This TCTS effectively increases the tax burden for most salaried employees above the exemption threshold, making it a vital consideration for payroll and personal income planning.
Key Features of the Current Framework
- Currency Used: Central African CFA franc (XAF)
- Tax Type: Progressive, based on total annual income
- Base of Assessment: Income (not wealth or capital alone)
- Bracket Indexation: Brackets are fixed in XAF and may not reflect inflation automatically
Example: Calculating Tax Liability
Suppose an individual earns XAF 4,000,000 ($6,557) in 2025. Tax would be calculated as follows:
- First XAF 1,500,000 ($2,460): 0%
- Next XAF 420,000 ($688): 5%
- Next XAF 780,000 ($1,279): 10%
- Next XAF 900,000 ($1,475): 15%
- Remaining XAF 400,000 ($656): 20%
Each portion of income is taxed at its corresponding rate, resulting in a total tax payable that rises progressively.
Pro Tips for Managing Individual Income Tax in Gabon
- Carefully review your total annual income and determine which tax brackets you fall into; income slightly above a bracket limit can have a significant impact on your effective tax rate.
- If you receive a salary, track the total monthly payment to utilize the XAF 150,000 ($246) monthly TCTS exemption fully.
- Consider structuring remuneration (where legally possible) to optimize for both base income tax and the TCTS surcharge for maximum efficiency.
- Always retain supporting documentation for incomes and withholdings, as tax authorities typically require proof in case of audit or discrepancy.
Official Resources
For the most up-to-date information or to verify the above data, consult Gabon’s official government site: gouvernement.ga
In summary, Gabon’s 2025 individual income tax system is progressive, with rates increasing from 0% up to 35% based on income brackets denominated in XAF. The addition of the complementary salary tax (TCTS) introduces another layer of assessment, especially relevant for salaried professionals. When planning your finances, review the brackets and monthly exemptions carefully to optimize your overall tax position.