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Gabon: implementation of country-by-country report and transfer pricing regulations

Law No. 026/2016 of 6 January 2017 determining the state's resources and charges for the year 2017 introduced an obligation to file a country-by-country report (CbC report) and specified the transfer pricing documentary obligation.

Obligation to file CbC report

Parent or ultimate parent companies are required to file a CbC report within 12 months after the end of the fiscal year if the consolidated annual turnover excluding tax is equal to or greater than F.CFA491,967,750,000.00 for fiscal years beginning on or after 1 January 2017.

Failure to comply with this obligation will lead to a penalty equal to 0.5% of consolidated turnover excluding taxes, capped at F.CFA100 million per fiscal year (article P-831 ter and P-1010 ter of the General Tax Code (GTC)).

New terms and conditions for presentation of transfer pricing documentary obligation

Article P-831 of the GTC provides an annual obligation to transmit transfer pricing documentation by Gabonese companies that have commercial relations with associated companies established abroad. Finance law 2017 modified the format for presenting this documentation.

From now on, the documentation must include two files in French, which must be presented in a dematerialized form: a main file and a local file.

Tax instruction will further detail documentary content relating to main file and local file

In any case, Gabonese companies must endeavor to determine their transfer prices in accordance with the arm’s-length principle (article P-831 bis of the GTC). The main file and local file must include:

  • An analysis of the functions performed
  • The assets used and the risks assumed
  • An explanation concerning the selection and application of the methods used

Sanctions tightened in cases of non-compliance with transfer pricing documentary obligation

Failure to comply with the transfer pricing documentary requirement exposes the company to a penalty equal to 5% of the company's total intercompany trading volume, with a minimum of F.CFA65 million per fiscal year.

Previously, this penalty was equal to 5% of the deemed profits transferred abroad with a minimum of F.CFA5 million per verified year (article P-1010 bis of the GTC).

Obligation to report results electronically

As from 1 January 2017, companies with a turnover greater than or equal to F.CFA1.5 billion must report their results electronically (article P-818 bis of the GTC).

Prior to this provision, electronic filing was an option for all companies, regardless of the amount of turnover. This option remains applicable for companies whose turnover does not reach F.CFA1.5 billion.

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