Exemptions--The following will have a provisional exexmption:
Income tax on individuals is a levy of a general, direct, personal, periodic, and progressive nature that taxes the net global income of individuals obtained in Equatorial Guinea, stemming from different sources.
The global income will be constituted by the total income from the following categories or sources:
a) Income from real estate assets, including capital gains.
b) Profits from industrial, commercial and handicraft activities.
c) Profits from farming operations.
d) Profits from non-commercial professions and the income related to them.
e) Wages, salaries, fees, bonuses, life annuities and other related ones.
f) Income from investments, including capital gains.
Calculation of Tax--IRPF
Individuals residing in Equatorial Guinea will be subject to the personal tax in their respective taxable category.
Income tax on individuals will cover the total taxable net annual income received in excess of the exempt amount as set in the following table:
Taxable Annual income Lien Tax
From 0 to 1,000,000 0% Exempt
From 1,000,001 to 3,000,000 10% 200,000
From 3,000,001 to 5,000,000 15% 500,000
From 5,000,001 to 10,000,000 20% 1,500,000
From 10,000,001 to 15,000,000 25% 2,750,000
From 15,000,001 to 20,000,000 30% 4,250,000
Over 20,000,001 35%
The tax debt of income tax on individuals is calculated by applying the taxes established accoring to the annual income, after applying all benefits anda deduction of 20% respective to professional expenses as determined in articles 219, 220 and 221 of the law.
Calculation of the Withholding Tax--10%
The Withholding Tax will apply to individual not residing and/or registered in Equatorial Guinea. Salaries or daily wages per item work that are paid to individuals as fair compensation of their work for others will be subject to a single tax of 10% and declared to the Tax Administration.
Business Tax Tips
Tax subjects-- The following shabe tax subjects:
Legal entities which, for the execution of their activities, abide by the requirements provided for the investment of the law, and they report to the Tax Administration, will be able to profit by the tax advantages in the conditions envisaged by the law.
Article 192--Piecework System
The taxable profit will be set per item regarding taxpayers of all categories, whose annual turnover does not exceed the following limits:
a) 30,000,000 francs CFA. per annual for individuals engaged in the rendering of non-commercials, agricultural, industrial and
construction services and activities.
b) 15,000,000 francs CFA. per annual for individuals engaged in commercial activities and liberal professions.
c) 12,000,000 francs CFA. per annual for individuals engaged in jobs for others, both in the publiv as well as in the private sector.
Nothwithstanding, individual companies whose turnover is lower than the limits envisaged in the preceding point are not subject to the rules governing the piecework system except when their turnover has been lower than these limits during three consecutive fiscal years of twelve months.
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