🇬🇶 Equatorial Guinea Tax Guide — Income, Corporate & VAT Rates

The tax rates in Equatorial Guinea range from 10% to 35% for personal income tax, with a corporate tax rate of 35% and a value-added tax (VAT) rate of 15%.

Tax System Overview

Equatorial Guinea has a territorial tax system, where individuals and companies are taxed only on income earned within the country. However, worldwide taxation may apply to residents, who are taxed on their global income. To be considered a tax resident in Equatorial Guinea, an individual must have a permanent home in the country, or spend more than 183 days in the country within a calendar year. The tax system is administered by the Ministry of Finance and Budget, and tax laws are governed by the General Tax Code.

The tax system in Equatorial Guinea is relatively complex, with various taxes and fees applicable to different types of income and activities. The country has a network of double taxation treaties with several countries, aimed at avoiding double taxation and promoting international trade and investment. Taxpayers are required to register with the tax authorities and obtain a tax identification number to file tax returns and pay taxes.

Personal Income Tax

Corporate & Business Tax

• The corporate tax rate in Equatorial Guinea is 35%, applicable to companies resident in the country.
• Small businesses with an annual turnover of less than 50 million XAF are eligible for a reduced tax rate of 20%.
• Free zones are available for companies engaged in export-oriented activities, with tax exemptions and other incentives.
• Companies must register with the tax authorities and obtain a tax identification number to file tax returns and pay taxes.
• Companies are required to file annual tax returns, and tax payments are due by the end of the tax year.

VAT / Sales Tax

• The standard VAT rate in Equatorial Guinea is 15%, applicable to most goods and services.
• A reduced VAT rate of 10% applies to essential goods and services, such as food, healthcare, and education.
• Exemptions from VAT are available for certain activities, such as financial services and international transportation.
• A tourist refund scheme is available for foreign tourists, allowing them to claim a refund of VAT paid on purchases made during their stay in the country.

For Expats & Foreign Workers

• Tax residency rules apply to expats and foreign workers, who are considered tax residents if they spend more than 183 days in the country within a calendar year.
• Double taxation treaties are in place with several countries, aimed at avoiding double taxation and promoting international trade and investment.
• Social security contributions are mandatory for employees and employers, with a contribution rate of 10% for employees and 15% for employers.
• Remittance rules apply to foreign workers, who are required to remit a portion of their earnings to their home country.
• Expats and foreign workers are required to register with the tax authorities and obtain a tax identification number to file tax returns and pay taxes.
• Expats and foreign workers may be eligible for tax deductions and allowances, such as deductions for housing and education expenses.

Crypto & Investment Income

• Investment income, such as dividends and interest, is subject to a withholding tax of 10%.
• Capital gains tax is levied at a rate of 10%, or is included in income tax.
• Cryptocurrency transactions are subject to VAT, with a standard rate of 15% applicable to most transactions.
• Investment income earned by non-residents is subject to a withholding tax of 20%, unless a double taxation treaty applies.