The corporate income tax (CIT) must be paid by any resident entity.
Taxable profit is determined by deducting from gross income all expenses tied to the performance of taxable activities in Equatorial Guinea. In principle, all expenses are deductible, but the Tax Code provides deductibility rules for some of them.
Resident companies are subject to CIT on their worldwide income (even if, in practice, it is tolerated for CIT only to be applied to income related to activities carried out in Equatorial Guinea). Non-resident entities and individuals are subject to a 10% withholding tax (WHT) on gross income derived from Equatorial Guinea sources. Mobilisation, demobilisation, and transportation services are subject to WHT at a rate of 5%.
The CIT rate is 35% on taxable profits.
Minimum income tax (MIT)
The MIT rate for fiscal year 2024 is 1% of the turnover of the company for the previous year. This amount cannot be lower than 800,000 Central African CFA francs (XAF) (even if the company does not generate any revenue).
MIT is deductible from the CIT liability to be paid.
Local income taxes
There are no provincial or local income taxes in Equatorial Guinea.