Key Updates: Equatorial Guinea’s New Tax Code Effective 2025

Equatorial Guinea’s recently adopted Tax Code, Law No. 1/2024, represents a major shift in the country’s tax framework. It is designed to modernise the system, encourage compliance, and foster economic growth. These changes, ranging from reduced corporate tax rates to new personal income tax brackets and a revamped oil and mining regime, will impact businesses and individuals differently, depending on their size, structure, and sector. 

At CLG, we understand that navigating these updates may seem complex, but we are here to ensure our clients remain compliant while optimising their tax strategies. Whether you’re a multinational corporation, a smaller business benefiting from the simplified regime, or a contractor in the oil and mining sector, these changes could influence your tax obligations, financial planning, and reporting processes. 

Key Highlights: 

• Corporate Tax: The corporate tax rate has been reduced from 35% to 25%, easing the burden on companies while introducing stricter rules on exemptions, which will require careful planning to maximise benefits. 
• Minimum Income Tax (MIT): Businesses are now required to make two annual payments, with a simplified option for smaller taxpayers. Understanding eligibility and structuring compliance will be crucial for cost management. 
• Personal Income Tax: Adjusted tax brackets and rates mean employees and employers must adapt to new payroll structures, which we can help implement effectively. 
• Oil and Mining Regime: Non-resident contractors and subcontractors are subject to a 10% withholding tax, requiring proactive financial planning to mitigate potential challenges. In contrast, resident contractors are subject to 3% withholding tax. 

These updates are designed to create a more sustainable and equitable system but may bring operational challenges. CLG is committed to helping you assess your specific obligations, minimise risks, and unlock opportunities under the new framework.  

Distributed by APO Group on behalf of CLG.

For tailored advice or assistance, reach out to our team:
info@clgglobal.com