Suspends all tax exemptions for non-oil companies
19 Feb 2025
On 19 February 2025, the Government decided to suspend all tax exemptions for non-oil companies in the country. Prior to the suspension decision, Equatorial Guinea offered several tax exemptions and incentives to non-oil companies under its Investment Law. These incentives included:
• Employment Incentives: Companies could reduce their taxable income by an amount equivalent to 50 per cent of the wages paid to national employees, encouraging the hiring of local staff.
• Training Deductions: Firms investing in training for national personnel were eligible for a reduction in taxable income equal to 200 per cent of the non-wage costs allocated to such training, promoting skill development among local workers.
• Export Promotion: Businesses engaged in non-traditional exports received a tax credit certificate worth 15 per cent of the revenue from these exports, incentivizing diversification of export products.
• Regional Development Benefits: Enterprises operating in underdeveloped areas outside major urban centers were granted full amortization of infrastructure costs and exemptions from various taxes, excluding income tax, sales tax, customs assessments, and other levies directly related to their activities in these regions.
• Local Ownership Incentives: Companies with more than 50 per cent local ownership benefited from a reduction in taxable income, calculated as 1 per cent of the amount exceeding the 50 per cent national participation threshold, encouraging local investment and participation.
These incentives were designed to stimulate economic growth, promote local employment, and encourage investment in various sectors of the economy.
Nature of measure:
Type:
-
Promotion and facilitation (Investment incentives)
Industry:
Inward FDI:
No
Outward FDI:
No
Sources:
