Worldwide transfer pricing reference guide 2014

Gabon
Taxing authority and tax law
Taxing authority: Gabonese Tax Administration.
Tax law: General Tax Code (GTC).
Section 12 and Section P 860 of the GTC contains the main legislative provisions concerning transfer pricing.
Section 12 of the GTC provides that transaction between group companies should be conducted as if the transaction were undertaken
with third parties. The profit level of the transactions undertaken would also be taken into account.
Relevant regulations and rulings
There are no specific regulations or rulings.
OECD guidelines treatment
The tax administration accepts the OECD Guidelines.
Priorities/pricing methods
The tax administration should accept the methods prescribed by the OECD; i.e., CUP, Resale Price, Cost Plus, TNMM and Profit Split.
Transfer pricing penalties
Any excessive charges would be regarded as distributions of income and will be subject to withholding taxes as the case may be.
Tax adjustments for transfer pricing are subject to the normal penalty rules. In case of an audit from the tax authorities, an incorrect
corporate tax return is subject to a penalty of 1.5% on the basis of amount recovered capped at 50%. In case of willful neglect, the
penalty is increased by 100%. In case of fraud, the penalty is 150% over and above the penalty for incorrect tax return detailed above.
According to the Finance Act 2014, failure to submit the transfer pricing documentation is subject to a penalty of 5% on the profits
transferred abroad (a minimum penalty of XAF5,000,000 per year).
Penalty relief
It is possible to get remission from penalties on special request to the tax administration.
Documentation requirements
Section P-860 provides that the company is required to provide a transfer pricing documentation which should detail the transfer pricing
policy adopted by the head office. This document should include legal, economic, tax and accounting details and the methodology used
to validate the transfer pricing policy. The document should also include details about the relationship which the company has with other
group companies with whom transactions would be undertaken.
Documentation deadlines
Transfer pricing documentation should be provided at the start of the fiscal year of operation.
The Finance Act 2014 also specifies that the transfer pricing documentation should be provided at the start of an audit account. In case
of violation, a warning of payment in a 15 days term is sent to the company.
Statute of limitations on transfer pricing assessments
The statute limitation is four years after the payment of corporate tax is due. Taxes are due by 30 April following the calendar year end.
Return disclosures/related party disclosures
There are no disclosure requirements.
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