Value-added tax (VAT)
VAT is an indirect tax on consumption based on turnover.
All operations performed in Equatorial Guinea are subject to VAT unless they are included in the list of exemptions provided by the EG Tax Code or a specific tax regime.
VAT is generally chargeable on the following:
- Goods sold or assigned for valuable consideration.
- Services provided.
- Self-consumed goods and services.
- Other operations carried on by individuals or legal entities in their sphere of business, professional, and individual activities, including extraction activities.
The standard VAT rate is 15%.
A rate of 0% is applicable to a specific list of products and equipment provided in the Tax Code (e.g. certain medical products, some equipment for construction).
A reduced rate of 6% is applicable to a limited list of basic consumables and books.
- Tax on consumption of alcoholic and non-alcoholic beverages:
- Alcoholic: Between XAF 50 and XAF 150 per litre for imported beverages; XAF 30 per litre for local produced beverages.
- Non-alcoholic: Between XAF 50 and XAF 100 per litre.
- Tax on consumption of cigarettes: Between XAF 5,000 and XAF 10,000 per unit, depending on the quantity produce/imported.
- Tax on automobiles, boats, and motor vehicles: Depending on the value of the vehicle.
The customs duties are based on the categories of goods as follows:
- Category I: Primary necessity goods: 5%.
- Category II: Raw material and materials: 10%.
- Category III: Intermediary goods and miscellaneous: 20%.
- Category IV: Current consumption goods: 30%.
Excise taxes are applicable on specific goods, such as alcoholic drinks and tobacco. The EG Tax Code (article 296) provides a single rate of 30% applicable to products subject to excise taxes.
Real property tax
A 1% urban property tax applies annually to 40% of the value of the land and the buildings on such land. Urban property is defined by the Tax Code as “any land with or without buildings and the buildings built thereon, whenever located in urban areas”.
For the transfer of goods between residents and non-residents, and between non-residents, there is a 3% tax on the value of the goods.
Real estate transfers between residents are taxed at the rate of 5% on the value of the real estate. The rate increases to 25% on real estate transfers between residents and non-residents, and between non-residents.
Stamp duties are payable on a variety of instruments and transactions and vary depending on the concerned legal act.
A registration tax of 2% will be calculated on the value of all public contracts signed with the state of Equatorial Guinea and will be paid by the provider. The 2021 Budget Law of Equatorial Guinea has introduced a registration tax of 0,5% on the value of the maintenance contracts signed with the State of Equatorial Guinea to be paid by provider.
The personal income tax (PIT) liability is withheld from the employee’s salary and declared and paid by the employer.
The tax tables applicable to individuals are provided in the Taxes on personal income section of Equatorial Guinea’s Individual tax summary.
Social security contributions
Employers contribute 1% of gross salary to the Work Protection Fund (Fondo de Protección al Trabajo in Spanish) and 21.5% to the National Institute of Social Security (INSESO for its Spanish acronym) on a monthly basis.
Employees contribute 0.5% of net salary to the Work Protection Fund and 4.5% to the INSESO on a monthly basis.
Both of these contributions are declared and paid by the company.
A tourism tax of at least XAF 1,000 per day will be withheld by hotels from their clients.
Tax on telecommunications
10% on income.
Tax on plastic bags
XAF 25 per plastic bag.