Embassy of Gabon in South Africa - Investment and Regulations in Gabon

Given Decree N° 001195 of December 22nd, 1999, defining the modification of Article 1 of Decree N° 000171/PR of January 25th, 1999, determining the composition of the Government of the Republic;
Given Decree N° 0168/ PR of January 26th, 1984, defining the attributions and organization of the State Secretariat for Tourism, in charge of Leisure Activities;
Given Decree N° 1145/ PR/ MTCSL of October 10th, 1989, complementing Decree N° 168/ PR of January 26th, 1984, defining the attributions and organization of the State Secretariat for Tourism, in charge of Leisure Activities;
Given Law N° 14/ 99 of January 24th, 2000, authorizing the President of the Republic to administer through orders during the parliamentary intersession;
Given Law N° 015/ 98 of July 23rd, 1998, instituting the Investment Charter in the Gabonese Republic; Having consulted the Administrative Court;
Having heard the Council of Ministers;

Article 1er:
The present order, based on the application of the provisions of articles 47, 52 of the Constitution, and 4 of Law 015/ 98 of July 23rd, 1998 above mentioned, concern the administration applicable to investors in the tourist setor.

Article 2:
The present order is to be applied to:
• Companies involved in the tourist industry, classified and labeled as such by the Ministry in charge of Tourism;
• Companies participating exclusively in a project endorsed by the Ministry in charge of Tourism.
Article 3:
For the purposes of the present order, we have defined:
• Companies involved in the tourist industry, as being companies that can be classified and homologous as such according to the regulations in application, and making investments in the following fields:
• Construction and/or equipment for tourist lodging establishments (hotels, motels, tourist residences, inns,);
• Construction and/or equipment for establishments on the sites wherein the Ministry in charge of tourism recognizes a tourist interest (casinos, restaurants, cafes, bars, snack bars, sports or cultural facilities, marina,)
• Remodeling, renovation and renewal of the equipment for establishments contributing to tourist activities;
• Transportation of tourists by land, sea or air;
• Tourist operations with pleasure boats, as well as the organization of hunting or fishing for tourists and/or as a sports activity;
• Organization of tourist stays and trips;
• The extension of an establishment for the purpose of lodging or tourist activities, as being any investment aiming at the increase in the lodging capacity or cultural activities of the establishment through a construction or remodeling inside or near the existing building, on condition that the operation comes within the framework of the already existing management.
Article 2:
The present order is to be applied to:
• Companies involved in the tourist industry, classified and labeled as such by the Ministry in charge of Tourism;
• Companies participating exclusively in a project endorsed by the Ministry in charge of Tourism.
Article 3:
For the purposes of the present order, we have defined:
• Companies involved in the tourist industry, as being companies that can be classified and homologous as such according to the regulations in application, and making investments in the following fields:
• Construction and/or equipment for tourist lodging establishments (hotels, motels, tourist residences, inns,);
• Construction and/or equipment for establishments on the sites wherein the Ministry in charge of tourism recognizes a tourist interest (casinos, restaurants, cafes, bars, snack bars, sports or cultural facilities, marina,)
• Remodeling, renovation and renewal of the equipment for establishments contributing to tourist activities;
• Transportation of tourists by land, sea or air;
• Tourist operations with pleasure boats, as well as the organization of hunting or fishing for tourists and/or as a sports activity;
• Organization of tourist stays and trips;
• The extension of an establishment for the purpose of lodging or tourist activities, as being any investment aiming at the increase in the lodging capacity or cultural activities of the establishment through a construction or remodeling inside or near the existing building, on condition that the operation comes within the framework of the already existing management.

Facilities Granted to Companies in the Tourist Sector
Article 5:
In accordance with the provisions of the present order and notwithstanding the legal texts in force, the companies referred to in article 2 mentioned above, are to be given certain advantages in administrative, customs and fiscal areas.

Administrative Advantages
Article 6:
Companies involved in tourism are to benefit from the assistance of the State for the opening up of the zones where they would like to set up business.
They also benefit from administrative measures tending to:
• Facilitate the entrance of tourists into the national territory; especially, through the instituting of tourist visas;
• Ensure the security and protection of tourist sites and tourists;
• Create and maintain a group of eco-guides in charge of managing and guiding tourists;
• Grant free of charge to the new companies involved in the tourist trade, some air time on the national radio and television, for promotional programs during the first three months of their operations

Customs Facilities
Article 7:
The new companies involved in the tourist industry will continue, for a period of up to ten years, to benefit from a total tax exemption status for customs duties and fees collected for the importation of material and tools, equipment and tourist vehicles which are new and to be used for the development of the tourist operations

Fiscal Facilities
Article 8:
Companies concerned by article above mentioned, are tax exempt during the period of the construction of the project that has been approved;
• For corporate taxes, when these taxes are levied upon an entity having corporate status;
• For income taxes levied on individual businesses in the category of industrial and commercial profits, when these profits have been made in the form of a one-man business.
Article 9:
The companies concerned by article 2 above mentioned are tax exempt during the first eight years of operations, to begin at the end of the construction period of the project:
• For corporate taxes, when these taxes are levied upon an entity having corporate status;
• For income taxes levied on individual business in the category of industrial and commercial profits, when these profits have been made in the form of a one-man business.
Article 10:
Companies in the tourist industry are to be taxed during the eight years following the total exemption period:
• For corporate taxes, upon half of the taxable profits, when these taxes are levied upon a entity having corporate status;
• For income taxes levied on individual business in the category of industrial and commercial profits, when these profits have been made in the form of one-man business.
Article 11:
Companies involved in the industry can impute or carry over losses incurred during the tax-exempt periods mentioned above, to profits realized during the three years following the end of the tax-exempt period.
Article 12:
Companies involved in the tourist industry, as well as companies participating exclusively in a project approved for the tourist industry, are not to pay corporate taxes or individual income taxes, as the case may be, over the capital gains of a transfer of any element of their real estate assets.
Article 13:
The provisions of article 159 of the General Code of direct and Indirect Taxes are not applicable to the payments made by companies involved in the tourist industry, and during the ten years following this period.
Article 14:
The provisions of Book 11 of the Code for Registration, Turnover Taxes on Movable Values and Registration Stamps, are applicable to companies involved in the tourist industry.
Article 15:
Non-resident employees of companies in the tourist industry, as well as of companies participating exclusively in a project approved for the tourist industry, are not to pay income taxes during the construction period, and the first year following the construction period of the approved project, according to the conditions defined in the regulations.
The tax rate imposed on individuals or one-man businesses is to be reduced during the following eight years.
Article 16:
Companies involved in the tourist industry are exempt from the payment of patents during the first five years of operations.
Article 17:
Companies involved in the tourist industry are to conform to articles 290 to 303 of the General Code of Direct and Indirect Taxes, subject to the following provisions:
• New constructions are to pay no property taxes over a ten-year period beginning on the 1st day of January following the completion of the construction;
• Following the tax-exemption period, property taxes are to be paid with an 80% discount for the first year, 60% for the second year, 40% for the third year, and 20% for the fourth year;
• Following the tax-exemption period, the property taxes cannot go above ten percent of the rental value of the buildings.
Article 18:
Companies involved in the tourist industry will not pay:
• Property taxes on properties with no buildings, written up in the articles 304 to 318 of the General Code of Direct and Indirect Taxes;
• Land taxes found in articles 319 to 333 of the General Code of Direct and Indirect Taxes;
• Special real estate, taxes levied on rental income, written up in articles 349 to 358 of the General Code of Direct and Indirect Taxes.
Article 19:
Companies involved in the tourist industry will not pay transfer taxes on goods, as stated in articles 334 to 348 of the General Code of Direct and Indirect Taxes, until the end of a period of 20years, beginning on the date when the buildings has been completed.
Article 20:
Documents signed by businesses in the tourist industry and submitted to registration formalities will be registered free of charge.
Article 21:
Insurance contracts for a business in the tourist industry will be exempt of the tax mentioned in articles 338, and according to the Code for Registration, Turnover Taxes on Movable Values and Registration Stamps.
Article 22:
Companies involved in the tourist industry as well as companies participating exclusively in a project approved for the tourist industry, during the entire period of tax privileges, will not be obligated to pay any other tax, fee or assessment created after the application of the present order.
Article 23:
Companies involved in the tourist industry will benefit from the advantages announced in the Investment Charter in the area of repatriation of capital and profits; notably, of access to foreign currency and the freedom to transfer capital within the rules and regulations of the tax-free zone.
Article 24:
Companies concerned by article 2 above mentioned nevertheless remain obligated to turn in a declaration of revenue, notwithstanding the advantages concede in the present order.

OBLIGATIONS
Article 25:
Companies concerned by article 2 above mentioned are to be committed to the principle of giving priority to the hiring of Gabonese workers

MISCELLANE OUS DISPOSITIONS
Article 26:
Without prejudice to the common law applicable in the matter, any failure of a business in the tourist industry to respect the provisions of the present order, as well as any action that can or has had the effect of profiting from unfair exemptions, will either temporarily or permanently cause the forfeiture of the right to these tax exemptions and to other advantages provided for.
This forfeiture of rights is pronounced by the Minister in Charge of Tourism, according to the procedure defined in the regulations.
Article 27:
Companies concerned by article 2 above mentioned are obligated to conform to the legal provisions and regulations concerning the protection of the environment, notwithstanding the advantages conceded in the present order.
Article 28:
A statutory text will define the minimum investment and national employment conditions for a company involved in the tourist industry to benefit from the advantages conceded in the present order.

FINAL DISPOSITIONS
Article 29:
It is the statutory texts that determine, whenever necessary, the provisions that are to be used for the application of the present order.
Article 30:
The present order will be registered , published according to urgent procedure, and applied as a Law of the State.

By the President of the Republic Head of State;
The Prime Minister
Head of the Government
The minister of Trade tourism, Industrial Development and Craft Industry
The Minister of Economy, Finance, Budget and Privatization.