Equatorial Guinea Tax Regime

Equatorial Guinea levies corporate income tax (CIT) at a standard rate of 25% on taxable profits. Resident companies are formally subject to CIT on worldwide income, although in practice the tax administration applies the tax mainly to income connected with activities carried out in Equatorial Guinea, giving the regime a de facto territorial character alongside its worldwide legal basis. Non-resident entities and individuals are taxed by withholding on Equatorial Guinea-source gross income. As a CEMAC member state, Equatorial Guinea applies the regional common external tariff and VAT coordination framework, and its tax law operates alongside OHADA uniform business and accounting law. The hydrocarbon sector — the dominant driver of the economy — is governed by dedicated petroleum legislation and production-sharing contracts that sit alongside the general Tax Code.

1.1 Sources

Primary legislation includes the Tax Code (Código Tributario / Ley de Régimen Fiscal), the annual Finance Law, the Hydrocarbons Law and associated production-sharing contracts, the CEMAC common external tariff and VAT directives, and the OHADA Uniform Acts on commercial companies and accounting.

1.2 Recent developments

The minimum income tax (MIT) rate for fiscal year 2025 was maintained at 1.5% of company turnover, payable in two instalments — 15 July (based on income received January to June) and 15 January (based on income received July to December) — and remains creditable as an advance payment against final CIT liability. Real estate transfer tax continues to apply differentiated rates depending on whether both parties to the transfer are resident, with cross-border transfers taxed at a materially higher rate. Regional CEMAC coordination on VAT and customs, and continued administrative modernisation, remain the principal near-term drivers of change.

Headline statutory corporate income tax rate for a resident company. Where sub-national (state, provincial, cantonal or municipal) corporate taxes apply, the combined rate reported by the OECD is shown. Projected 2026–2028 rates carry the current rate forward unless a change is already enacted or officially scheduled. As-of 2026.

Top marginal statutory personal income tax rate on employment income for a resident individual. Where sub-national (state, provincial, cantonal or municipal) income taxes are a standard part of the system, the combined top rate is shown. Projected 2026–2028 rates carry the current rate forward unless a change is already enacted or officially scheduled. As-of 2026.

2.1 Rates and residence

Any resident entity is liable to corporate income tax, levied at a standard rate of 25% on taxable profits. Resident companies are, as a matter of law, subject to CIT on worldwide income, although in administrative practice the tax is tolerated as applying principally to income connected with activities carried out in Equatorial Guinea — a distinction that matters for groups assessing their exposure on offshore income and for planning purposes, since the formal worldwide basis remains the statutory position. Non-resident entities and individuals are subject to withholding tax at 10% on gross Equatorial Guinea-source income, with a reduced 5% rate applicable specifically to mobilisation and demobilisation services performed by resident entities or individuals — a category of particular relevance to the oil-services sector.

2.2 Minimum income tax (MIT)

A minimum income tax operates alongside ordinary CIT: for fiscal year 2025 the MIT rate is 1.5% of the company's turnover for the current year, paid in two instalments — the first due by 15 July, computed on income received from January to June, and the second due by 15 January, computed on income received from July to December. The MIT functions as an advance payment of CIT and is fully creditable against the taxpayer's final CIT liability for the year, ensuring that — subject to timing — the overall annual burden is not simply the sum of MIT and CIT but the higher of the two, with any MIT paid in excess of final CIT liability preserved as a credit.

2.3 Dividends and participation

Dividends paid to non-residents are subject to withholding tax at 15%, alongside interest paid to non-residents, which is subject to the same 15% rate. Equatorial Guinea does not operate a broad domestic participation exemption regime; intra-group and portfolio dividend distributions are generally taxed under the ordinary CIT and withholding framework rather than through a dedicated exemption mechanism, though double tax treaty relief (where applicable) may reduce the withholding burden on qualifying cross-border distributions.

2.4 Income determination and deductions

Taxable profit is determined by deducting from gross income all expenses tied to the performance of taxable activities in Equatorial Guinea. As a general principle, all expenses are deductible, but the Tax Code sets out specific deductibility rules and restrictions for certain categories of expenditure (including some related-party charges, provisions, and specified non-business costs). Accounts are prepared under the OHADA Uniform Act on accounting (SYSCOHADA) and adjusted for tax purposes. Depreciation generally follows rates set by reference to the useful life of the asset class under the Tax Code.

2.5 Interest limitation

Interest paid on related-party financing is deductible subject to arm's-length pricing and specific limitations under the Tax Code's deductibility rules; interest that departs from market terms or exceeds prescribed benchmarks may be disallowed. Interest paid to non-residents is, in addition, subject to withholding tax at 15%, so payer-side deductibility and payee-side withholding must both be assessed for cross-border related-party financing structures.

2.6 Losses

Tax losses may generally be carried forward against future taxable profits for a limited number of years under the Tax Code, with no loss carryback available. Because the MIT operates as a turnover-based floor independent of the taxpayer's profit or loss position, a company carrying forward losses will still generally owe MIT instalments based on turnover, even in years where no CIT is ultimately due, with any MIT paid preserved as a credit against CIT once profitability resumes.

2.7 Group taxation

Equatorial Guinea does not operate a formal fiscal consolidation or group relief regime; each resident entity is assessed to CIT and MIT individually. Groups with multiple Equatorial Guinean entities cannot offset the profits of one against the losses of another for CIT purposes, and each entity independently computes and remits its own MIT instalments based on its own turnover.

2.8 Controlled foreign companies

Equatorial Guinea does not operate a dedicated controlled foreign company regime attributing the income of low-taxed foreign subsidiaries to resident parent companies. Given the formal worldwide basis of CIT for resident companies (tempered by administrative practice limiting enforcement to Equatorial Guinea-connected income), the policy rationale for a CFC regime is less pressing than in strictly territorial systems, though groups should not assume that offshore income is beyond the reach of the tax administration purely as a matter of law.

2.9 Transfer pricing

Transactions between related parties must be conducted on arm's-length terms, and the tax administration may adjust the taxable base where related-party pricing for goods, services, financing or intangibles departs from market terms. As a CEMAC and OHADA member state, transfer pricing practice in Equatorial Guinea is progressively aligning with regional and OECD-influenced norms, though the formal documentation and country-by-country reporting framework remains less developed than in OECD economies; oil-sector and other large taxpayers face closer scrutiny of cross-border related-party dealings given their fiscal significance.

2.10 Incentives

Equatorial Guinea's investment framework provides negotiated incentives — including reduced rates, customs relief and accelerated depreciation — for qualifying investment projects, particularly those diversifying the economy beyond hydrocarbons (agriculture, fisheries, light industry and infrastructure). Registration tax at a reduced 0.5% rate on contract value applies to contracts signed with public and private entities, a lower-cost alternative to the higher rates applicable to certain real estate transactions described in section 6.2.

2.11 Hydrocarbon-sector taxation

The oil and gas sector, the dominant contributor to national income, is governed by the Hydrocarbons Law and individual production-sharing contracts negotiated with the state, which typically set out bespoke royalty, cost-recovery, profit-oil-sharing and taxation terms distinct from the general Tax Code. Oil-services companies performing mobilisation and demobilisation activities benefit from the reduced 5% withholding rate described in section 2.1, reflecting the specific commercial character of that activity; absent more specific negotiated contractual terms, hydrocarbon-sector companies are otherwise subject to the standard 25% CIT rate and the MIT regime described in section 2.2.

3.1 Residence and rates

Resident individuals are taxed on Equatorial Guinea-connected income under the personal income tax schedule, while non-residents are subject to withholding tax at 10% on gross Equatorial Guinea-source income (the same general non-resident rate applicable to entities). Employment, business and professional income earned by residents is subject to progressive personal income tax rates, with employers withholding tax at source on salaries and remitting to the tax administration on a periodic basis.

3.2 Capital income and real estate

Dividends and interest paid to non-resident individuals are subject to withholding tax at 15%, matching the rate applicable to corporate recipients. Real estate transfers between two resident parties are taxed at 5% of the value of the property, while transfers between a resident and a non-resident, or between two non-residents, are taxed at the materially higher rate of 20% — a distinction that should be factored into the structuring of any property-holding vehicle involving foreign ownership. Capital gains realised by individuals on Equatorial Guinea assets are generally taxed under the ordinary income tax schedule.

3.3 Social security and payroll

Employers and employees contribute to Equatorial Guinea's national social security institute, covering family benefits, work-injury insurance and old-age/survivors pensions, with contribution rates expressed as a percentage of gross salary up to applicable ceilings, and the larger share typically borne by the employer. Employers withhold and remit employment income tax and social security contributions on a periodic basis under payroll compliance obligations administered alongside the general Tax Code.

3.4 Inbound individuals

There is no separate net wealth tax. Expatriate employees, prevalent in the hydrocarbon and services sectors, are taxed on Equatorial Guinea-connected employment income under the ordinary schedular rules, with benefits in kind (housing, vehicle, home leave — common in expatriate remuneration packages) generally includable in taxable employment income. Where a double tax treaty applies, reduced withholding rates and double-taxation relief may be available; Equatorial Guinea's bilateral treaty network remains limited, so the standard non-resident withholding rates in sections 2.1 and 3.2 apply in most cross-border cases.

Non-resident entities and individuals are subject to withholding tax at 10% on gross Equatorial Guinea-source income as the general rate, with two specific carve-outs: mobilisation and demobilisation services performed by resident entities or individuals are subject to a reduced 5% rate, while dividends and interest paid to non-residents are subject to a higher 15% rate. This differentiated structure means that the correct characterisation of a cross-border payment — general services income, mobilisation/demobilisation activity, or a dividend/interest distribution — has a direct and material effect on the withholding rate applied.

Equatorial Guinea's bilateral double tax treaty network is limited relative to OECD economies; CEMAC regional coordination provides a supplementary mechanism for cross-border cooperation within the region, but does not itself eliminate withholding on intra-regional payments in the way that EU directives do for EU member states. Groups should confirm treaty availability and residence certification requirements before assuming any reduction to the statutory rates set out above.

5.1 General anti-abuse and related-party pricing

The Tax Code empowers the tax administration to adjust or disregard related-party arrangements that depart from arm's-length terms or that are structured principally to secure an undue tax advantage, with particular attention to cross-border financing, service and licensing arrangements given the significance of foreign-invested hydrocarbon and services operations in the economy. General deductibility restrictions under the Tax Code operate as a further check on aggressive related-party charge structures.

5.2 Regional and international coordination

As a CEMAC member state, Equatorial Guinea participates in regional coordination on customs duties, the common external tariff and VAT policy, and applies OHADA uniform business, accounting and arbitration law. Equatorial Guinea's bilateral double tax treaty network remains limited, and it is not yet a signatory to the OECD's multilateral instrument or Pillar Two framework; cross-border tax coordination operates predominantly through the differentiated withholding structure in section 4 and through CEMAC regional mechanisms rather than a broad treaty network.

6.1 VAT

VAT applies at a standard rate of 15%. A 0% rate applies to a specific list of products and equipment set out in the Tax Code (including certain medical products and construction equipment), and a reduced rate of 5% applies to a limited list of basic consumables and books. Registration is required for businesses conducting taxable operations above prescribed thresholds, and returns are filed periodically with the tax administration. Input VAT is recoverable against output VAT for taxable activities, subject to standard exclusions.

6.2 Transaction and other taxes

Real estate transfers between two resident parties are taxed at 5% of the value of the property; the rate rises to 20% where the transfer is between a resident and a non-resident, or between two non-residents — a material planning consideration for foreign-owned property-holding structures. Registration tax of 0.5% on contract value applies to contracts signed with public and private entities. There are no provincial or local income taxes in Equatorial Guinea — CIT and MIT are levied solely at the national level. Imports are subject to the CEMAC common external tariff plus ancillary regional levies, alongside import VAT.

7.1 Filing, assessment and audit

The tax year is generally the calendar year. CIT is assessed annually, while MIT is paid in two instalments during the year — 15 July for the first half-year and 15 January for the second half-year of the prior fiscal year — with MIT fully creditable against the final annual CIT liability. The tax administration conducts risk-based audits, with hydrocarbon-sector and other large taxpayers subject to closer ongoing scrutiny given their fiscal significance to the national budget. Companies should maintain robust turnover records to support the MIT computation, since it is assessed on turnover rather than profit.

7.2 Appeals and penalties

Taxpayers may lodge an administrative claim against an assessment with the tax administration, with further recourse to the competent courts where the claim is rejected or unresolved within the statutory period. Late filing and payment of CIT, MIT and VAT obligations attract interest and penalties calculated by reference to the amount and duration of the default. Mutual agreement procedures are available under the limited treaty network to resolve double taxation disputes with treaty partner jurisdictions.

Because MIT instalments are computed on a rolling half-year turnover basis rather than aligned to the calendar tax year-end, companies should track turnover on a continuous basis to prepare accurate 15 July and 15 January payments, and should reconcile cumulative MIT paid against final CIT liability when filing the annual return to ensure the credit is properly claimed and any excess preserved.

9.1 Entity choice

The sociedad anónima (SA) and sociedad de responsabilidad limitada (SRL/SL), both governed by OHADA uniform company law, are the standard vehicles for foreign investment, offering limited liability and a governance structure familiar to international groups. Branches of foreign companies are permitted and taxed under the same CIT and MIT framework as domestic companies, though incorporated subsidiaries are more common for longer-term operations, particularly in the hydrocarbon sector where local participation and content considerations weigh heavily on structuring decisions.

9.2 Structuring and incentives

Investors should plan cash flow around the MIT's rolling half-year instalment structure, which requires payment based on turnover regardless of profitability, with credit against final CIT liability rather than an outright separate cost. Related-party financing, service and licensing arrangements should be documented on an arm's-length basis given the tax administration's scrutiny of cross-border charges under section 2.9, and structures involving foreign ownership of real estate should account for the materially higher 20% transfer tax rate applicable to resident/non-resident and non-resident/non-resident transfers versus the 5% rate for resident-to-resident transfers. Oil-services groups should confirm whether the 5% mobilisation/demobilisation withholding rate applies to their specific activities, since it is materially more favourable than the general 10% non-resident rate.

9.3 Worked effective-rate illustration

An Equatorial Guinean SA reports turnover for the fiscal year of XAF 3,000,000,000, with deductible operating expenses (staff, services, arm's-length interest) of XAF 2,400,000,000, giving taxable profit of 3,000,000,000 − 2,400,000,000 = XAF 600,000,000. CIT at the standard 25% rate is XAF 150,000,000. The company's MIT liability for the year is 1.5% of turnover, i.e. 1.5% × 3,000,000,000 = XAF 45,000,000, paid across the two instalments (15 July and 15 January) and fully credited against the CIT liability, leaving a net final CIT payment of 150,000,000 − 45,000,000 = XAF 105,000,000. The effective rate on taxable profit remains 150,000,000 / 600,000,000 = 25%, since the MIT is a timing/advance-payment mechanism rather than an additive tax — the total annual CIT-related cost is unchanged at XAF 150,000,000, simply collected in three payments (two MIT instalments plus a final balancing payment) instead of one lump sum.

9.4 Compliance

Expect annual CIT filing, two MIT instalment payments per year timed to half-year turnover, periodic VAT compliance, statutory OHADA-compliant financial statements, and administrative attention to related-party pricing and correct withholding-rate characterisation across the 5%/10%/15% withholding categories. Hydrocarbon-sector participants should additionally track Hydrocarbons Law and production-sharing-contract obligations, which operate alongside the general Tax Code. Property transactions involving non-resident parties should budget for the 20% transfer tax rate rather than the 5% resident-to-resident rate.