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 15% WHT on gross income derived from sources in Equatorial Guinea. 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 2021 Budget Law of Equatorial Guinea has decreased the MIT rate from 3% to 1,5% of the turnover of the company for the previous year. This amount cannot be lower than XAF 800,000 (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.