In Guinea, employers have a responsibility to contribute to the National Institute of Social Security (Institut National de Sécurité Sociale - INSS) on behalf of their employees. The standard employer contribution rate to INSS is 18% of the employee's gross salary.

Withholding and Payment

Employers are responsible for withholding their own contributions and remitting the total to the INSS. Contributions are usually due on a monthly basis.

Other Employer Obligations

Employers have other obligations as well. They must submit a workforce declaration form when hiring new employees. They are also required to register with the INSS and obtain an employer registration number. Furthermore, employers must maintain accurate payroll records for tax and audit purposes.

Guinea operates a progressive income tax system, meaning your tax rate increases as your income rises. Tax brackets and rates are adjusted periodically, so it's important to seek the latest information through a tax advisor in Guinea.

Income tax, known as the Single Progressive Tax on Salary (Impôt Progressif Unique sur le Traitement et Salaire - IPTS), is withheld directly from your salary by your employer throughout the year.

Social Security Contributions

As an employee in Guinea, you are required to contribute to the National Institute of Social Security (Institut National de Sécurité Sociale - INSS). The employee contribution rate to INSS is 5% of gross salary. Your employer will withhold these contributions directly from your pay.

Other Potential Deductions

If you're a member of a trade union, your union dues may be deducted directly from your salary. However, it's worth noting that formal labor unions might not be common in Guinea.

Tax Returns

While employers withhold your income tax, it's recommended to consult a tax advisor in Guinea to determine specific filing requirements. This can help you understand if any additional tax liability or available deductions apply to your situation.

The standard VAT rate in Guinea is 18%. This rate is applicable to most supplies of goods and services within the country.

VAT Exemptions

In Guinea, certain services may be exempt from VAT. However, obtaining specific information from reliable sources can be challenging. It is highly recommended to consult a tax advisor in Guinea for clarification on which exemptions might apply. Potential exemptions sometimes include financial services, insurance services, and medical and healthcare services.

VAT Registration and Liability

Businesses exceeding a specific annual turnover threshold are generally required to register for VAT. It's critical to obtain the current threshold and any registration guidance from a tax advisor in Guinea. VAT-registered businesses must charge VAT on their services, collect it from their customers, and file regular VAT returns.

Place of Supply Rules

The place of supply rules determine where a service is considered to be supplied for VAT purposes. This is crucial for establishing whether to charge Guinean VAT. Specific reliable guidance on Guinea's rules seems difficult to obtain online and professional advice is recommended.

In general, the place of supply for services is where the supplier belongs (i.e., has their business establishment). However, there may be specific rules for services related to immovable property, electronic services, and others.

Guinea offers tax incentives to promote specific sectors of its economy. These sectors include mining, agriculture, and infrastructure.

Mining

The mining sector is a significant driver of Guinea's economy. Incentives may exist in the form of tax exemptions or reductions related to exploration, development, or specific mineral operations.

Agriculture

As Guinea aims to expand its agricultural sector, incentives may be available for businesses investing in agricultural production and processing.

Infrastructure

Projects related to infrastructure development may be eligible for tax breaks or special concessions.

Guinea's General Tax Code may include provisions for tax incentives. However, specific details are hard to find reliably. These could potentially include:

Reduced Corporate Tax Rates

Businesses operating in targeted sectors or designated investment zones might qualify for reduced corporate income tax rates.

Import Duty Exemptions

The Tax Code may offer exemptions from import duties on equipment and raw materials for eligible industries or projects.

The Investment Promotion Agency of Guinea is a resource for potential investors. It may provide information on the latest incentives available and assist businesses in the application process.