WHT in the general regime (i.e. any sector other than the oil and gas sector)
According to the 2023 Budget Law of Equatorial Guinea, there is a 15% tax withheld on the gross incomes obtained in Equatorial Guinea by non-resident entities and individuals. Therefore, as of 1 January 2023, all services (including those performed outside the country) provided to entities located in Equatorial Guinea will be subject to 15% WHT in Equatorial Guinea since the income is from an Equatorial Guinea source.
There is a 15% WHT on royalties for non-CEMAC residents.
Dividends and interests paid to non-residents are subject to 25% WHT.
Concerning CEMAC resident entities or individuals, they are subject to a maximum WHT rate of 10%. For the record, CEMAC countries include Cameroon, Gabon, Chad, Central African Republic, Republic of Congo, and Equatorial Guinea.
WHT on the oil and gas sector
In Equatorial Guinea:
- a 6.25% WHT must be applied to payments made to a resident entity within the oil and gas sector
- a 15% WHT must be applied to payments made to a non-resident entity and individuals within the oil and gas sector
- a 10% WHT must be applied to payments made to CEMAC resident entities and individuals, and
- a 5% WHT must be applied to payments made for mobilisation, demobilisation, and transportation services.
In practice, the tax authorities consider this tax only applies to sales of services.
The tax basis is composed of the gross amount paid to the provider.
The WHT paid by non-resident entities/individuals is considered as final tax.
Since 1 January 2019, the WHT suffered by resident entities/individuals will no longer be considered as a tax credit but as a deductible expense.