Employers in Equatorial Guinea have certain responsibilities when it comes to social security contributions. They are required to make contributions to the National Institute of Social Security (INSESO). These contributions include:

Employer's Contribution

Employers are required to contribute 21.5% of the gross salary of each employee.

Work Protection Fund

In addition to the employer's contribution, employers are also required to contribute 1% of each employee's gross salary to the Work Protection Fund.

Reporting and Payment

Employers have the responsibility of withholding employee contributions, adding their own contributions, and remitting the total payments to the INSESO. This process must be done in a timely and accurate manner to ensure compliance with the law.

In Equatorial Guinea, the income tax system is progressive. The tax brackets and rates are subject to change, so it's crucial to stay updated with the latest information.

Employee's Social Security Contributions

Employees in Equatorial Guinea contribute 4.5% of their gross wages to the National Institute of Social Security (INSESO).

Important Considerations

While employers are typically responsible for deducting income tax and social security contributions from their employees' salaries, it's important for employees to be aware of these deductions. It's highly recommended to consult with a tax professional or the National Institute of Social Security (INSESO) for the most current information on employee tax deductions and regulations in Equatorial Guinea.

The standard VAT rate (Impuesto sobre el Valor Añadido – IVA) in Equatorial Guinea is 15%. A reduced rate of 6% is applicable to a limited list of basic consumables and books.

VAT Liability for Services

When determining your VAT liability, consider the place of supply rules which establish where a service is considered to be supplied for VAT purposes. Specific guidance on determining the place of supply isn't readily available online for Equatorial Guinea. It's highly recommended to consult a tax expert within the country. The reverse charge mechanism might apply in certain B2B transactions. This means that the Equatorial Guinea business receiving the service from a non-resident supplier might become responsible for accounting for the VAT.

Important Categories of Services

If you provide digital services (software, streaming content, website subscriptions) to consumers in Equatorial Guinea, you may be liable for VAT, even if your business is located outside Equatorial Guinea. Services with a significant connection to a property located in Equatorial Guinea (e.g., construction, real estate services) usually fall under Equatorial Guinean VAT rules. Consulting, legal, and accounting services, when performed in Equatorial Guinea or deemed supplied in Equatorial Guinea, typically are subject to VAT.

VAT Registration and Reporting

Businesses exceeding a specific revenue threshold within Equatorial Guinea might be required to register for VAT. Finding updated information on registration thresholds online is difficult. Registered businesses must file periodic VAT returns and make corresponding payments to the tax authorities in Equatorial Guinea.

Important Considerations

Reliable online resources about VAT in Equatorial Guinea are limited. It's crucial to consult with a tax specialist in Equatorial Guinea to ensure proper compliance based on the specific nature of your services, place of supply, and the rules around B2B and B2C services.

Equatorial Guinea, a significant oil producer, may provide tax incentives specifically designed to attract foreign investment and development within its energy sector. Additionally, designated Free Trade Zones or Special Economic Zones (SEZs) could offer tax benefits like corporate income tax exemptions or reduced rates, import/export duty exemptions, and more.

Equatorial Guinea might also have incentives focused on promoting the diversification of its economy. These incentives could target sectors like agriculture, manufacturing, or tourism.

Potential Challenges

However, it's important to note that finding comprehensive and up-to-date information online about specific tax incentives in Equatorial Guinea can be challenging.

Recommended Approach

Therefore, it's essential to consult with tax experts within Equatorial Guinea, and potentially relevant government agencies such as the Ministry of Finance, Economy, and Planning, for reliable information on incentives.