Tax News Update    Email this document    Print this document  

February 11, 2020
2020-0346

Equatorial Guinea publishes Financial Law 2020

Equatorial Guinea's Financial Law 2020 (FL 2020) was published on 12 December 2019 through Law n°5/2019.

FL 2020 sets out the main measures adopted by the State to promote development objectives as well as integrate the reforms initiated by mutual agreement with the International Monetary Fund.

From a fiscal viewpoint, FL 2020 reflects the consolidation of measures adopted in the previous FL 2019, since these measures are reaffirmed or clarified and a special regime for infringements/sanctions has been created. FL 2020 also broadens the local tax base.

Key provisions include:

  • Increase in the withholding tax rate on income paid to nonresidents
    • Initially the tax rate was 10%. (see former articles 168 and 461 of the General Tax Code). When FL 2019 was published, this rate was increased to 20% regardless of the category of nonresident taxpayer. It is now set at 20% for natural persons and 15% for legal persons.
  • Tax on the use of plastic bags: 25 XAF per unit
  • Tax on telecom services: 10% (excluding Value-Added Tax)
  • Reconfiguration of the car tax
    • Vehicles up to 50 horsepower (hp):
      12.5%
    • Vehicles between 51 and 100 hp:
      15%
    • Vehicles between 101 and 150 hp:
      17.5%
    • Vehicles between 150 and 200 hp:
      20%
    • Vehnicles with more than 200 hp:
      25%

In addition, an annual registration requirement is established with taxation at a rate of 1% on the value of the vehicle for the first five years and 2% from the sixth year.

———————————————
CONTACTS

For additional information with respect to this Alert, please contact the following:

FFA Ernst & Young, Malabo

  • Alexis Moutome
    alexis.moutome@gq.ey.com
  • Maxime Mbassi
    maxime.augustin.mbassi@gq.ey.com
  • Davy Ondo
    georges.obiang@gq.ey.com

Ernst & Young Advisory Services (Pty) Ltd., Africa ITTS Leader, Johannesburg

  • Marius Leivestad
    marius.leivestad@za.ey.com

Ernst & Young LLP (United Kingdom), Pan African Tax Desk, London

  • Rendani Neluvhalani
    rendani.mabel.neluvhalani@uk.ey.com
  • Byron Thomas
    bthomas4@uk.ey.com

Ernst & Young LLP (United States), Pan African Tax Desk, New York

  • Brigitte Keirby-Smith
    brigitte.f.keirby-smith1@ey.com
  • Dele Olagun-Samuel
    dele.olaogun@ey.com

———————————————
ATTACHMENT

PDF version of this Tax Alert

 

The information contained herein is general in nature and is not intended, and should not be construed, as legal, accounting or tax advice or opinion provided by Ernst & Young LLP to the reader. The reader also is cautioned that this material may not be applicable to, or suitable for, the reader's specific circumstances or needs, and may require consideration of non-tax and other tax factors if any action is to be contemplated. The reader should contact his or her Ernst & Young LLP or other tax professional prior to taking any action based upon this information. Ernst & Young LLP assumes no obligation to inform the reader of any changes in tax laws or other factors that could affect the information contained herein.

 

Copyright © 1996 – 2024, Ernst & Young LLP

 

All rights reserved. No part of this document may be reproduced, retransmitted or otherwise redistributed in any form or by any means, electronic or mechanical, including by photocopying, facsimile transmission, recording, rekeying, or using any information storage and retrieval system, without written permission from Ernst & Young LLP.

 

EY US Tax News Update Master Agreement | EY Privacy Statement