Equatorial Guinea

Corporate - Significant developments

Last reviewed - 20 July 2021

The Law on General Budget for Fiscal Year 2020, Law N°5/2019, dated 12 December 2019, provides the following significant tax changes for fiscal year (FY) 2020:

  • Reduction of the withholding tax (WHT) rate from 20% to 15% for non-resident legal entities.
  • Revision of special taxes provided from Articles 481 to 501 of the General Tax Code. The following taxes, in particular, are concerned:
    • Tax on consumption of alcoholic and non-alcoholic beverages:
      • Alcoholic: Between 50 and 150 Central African CFA francs (XAF) 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.
  • Creation of the following new taxes:
    • Tax on telecommunications: 10% on income.
    • Tax on plastic bags: XAF 25 per bag.
  • The lists of exempt products and applicable sanctions are also provided in the same Law.