Global Mobility Services: Taxation of International Assignees - Equatorial Guinea

http://www.pwc.com/gq/en/index.jhtml
Global Mobility Services:
Taxation of International
Assignees - Equatorial Guinea
People and
Organisation
Global Mobility
Country Guide
(Folio)
Last Updated: June 2016
This document was not intended or written to be used, and it cannot be used, for the purpose
of avoiding tax penalties that may be imposed on the taxpayer.
Menu
Country:
Equatorial Guinea
Introduction:
4
Income tax summary
5
Rates of tax
7
Double-taxation agreements
8
Contacts and offices
9
Additional Country Folios can be located at the following website:
Global Mobility Country Guides
Global Mobility Country Guide (Folio) 3
Introduction:
PwC is the world's leading provider of
professional services. The People and
Organisation group works together
with its clients to find solutions for the
challenges they encounter when
transferring people from one country
to another.
4 People and Organisation
This summary is intended to inform
foreign nationals and their employers
about high level tax, social security and
immigration issues.
This guide is not exhaustive and
cannot be regarded as a substitute for
professional advice addressing
individual circumstances.
Nevertheless, answers will be found to
most of the questions raised by an
expatriate or his/her employer. More
detailed advice should be sought
before any specific decisions are made
about these issues.
More information can be
obtained from our offices
specializing in People and
Organisation, Global mobility.
Income tax summary
Question
Answer
Basic information
1
The date of the tax year end
31 December year
2
Types of income that are liable to tax
Any income derived from an activity (salary, allowances,
benefit in kind, etc.)
3
How are residents and non residents treated
differently for tax purposes?
Yes. For instance residents should be taxed on a
worldwide basis whereas non-residents will only be taxed
on their EG source income.
4
Do spouses file tax returns jointly or as
individuals?
No individual or joint filing requirement.
5
Method of determining domestic tax residence
Period spent in country – 3 months within a calendar
year or 6 months cumulative over 2 calendar years.
6
Provide some details of the exchange controls in
this jurisdiction
Applicable as per the CEMAC exchange regulation
(various authorizations and requirements) – but not
always applied in practice.
Tax rates, allowances and credits
7
Income tax allowance amount
20% of the gross salary in the limit of 1 million XAF
per annum
8
Capital gains tax allowance amount
N/A
9
Rate of capital gains tax
35% for CIT purposes
10
Rate of tax on interest
35% for CIT purposes
11
Rate of tax on dividends
35% for CIT purposes
12
Rate
of
employer
(INSESO+WPF)
social
security
22,5%
13
Rate
of
employee
(INSESO+WPF)
social
security
5%
14
What types of income are exempt from
tax/deductible from taxable income?
No particular exempt income except capital income
under certain conditions or capital gains when the
proceeds are re-invested within the country.
Before arriving in the country
15
What must an individual do in order to be able
to work in the country ie obtain a work permit,
intra company transfer visa, critical skills visa?
Obtain (i) Letter of invitation requested to obtain (ii) the
visa which is requested to obtain (iii) the work permit.
Global Mobility Country Guide (Folio) 5
Question
Answer
16
What conditions must be met to be eligible to
have a work permit?
Prior to the recruitment of an expatriate, the employer
needs to publish the job offer locally – in case no EG
national reply to this offer, they the work permit
procedure can be started.
17
What is the maximum period a work permit will
be issued for?
36 months
18
Can a work permit be renewed?
Yes
19
What would be the immigration requirements
for a short term business visitor?
Letter of invitation and Visa
20
At what point/type of activity would trigger a
tax liability in the country?
Any work performed within the country would become
subject to tax.
During the assignment
21
Does an individual need to register as a taxpayer
As an employee, No (the employer is in charge of these
formalities). As an individual enterprise, the answer
woud be Yes but we understand it is not the purposes of
this folio.
22
Timeline and process for registering as a
taxpayer
2 days as from the start of the economic activity in
Equatorial Guinea
23
Are provisional taxes required?
Yes. Calculated and paid by the employer every month
with an annual regularization at year-end.
24
If yes, on which dates?
Every month – within 15 days of each month
25
If yes, what
non compliance?
26
Important dates to remember during the
tax year
are
the
penalties
for
25% penalty plus 10% interest per month late
15th of each month and 31 January of Year N+1
At the end of the tax year
27
Tax return filing deadline
Employees do not file annual returns. Performed by the
employer every month, with an annual regularization
before 31 January of Year N+1
28
Penalty for late filing
Between 25% and 100%
29
Tax payment deadline
Before the 15th of the month following the month subject
to declaration.
30
Penalty for late payment
Between 25% and 100%
At the end of an assignment
31
6
The process and actions required before leaving
the country
People and Organisation
Notification to the relevant Administrations and
application for a Tax clearance certificate
Rates of tax
Personal income tax rates for 2015
Taxable income over
Not over
Income Tax rate (%)
XAF 0
XAF 1,000,000
0%
XAF 1,000,001
XAF 3,000,000
10%
XAF 3,000,001
XAF 5,000,000
15%
XAF 5,000,001
XAF 10,000,000
20%
XAF 10,000,001
XAF 15,000,000
25%
XAF 15,000,001
XAF 20,000,000
30%
More than 20,000,000
35%
Global Mobility Country Guide (Folio) 7
Doubletaxation agreements
Countries with which
double-taxation
agreements are in place
CEMAC Counties
8
People and Organisation
Contacts and offices
Contacts
Sébastien Lechêne
Director in charge of the office
Raphael Beilvert
Manager
Tel:
+240 222 27 38 41
Tel:
+240 222 70 90 62
Email:
[email protected]
Email:
[email protected]
Global Mobility Country Guide (Folio) 9
© 2016 PwC. All rights reserved. PwC refers to the US member firm or one of its subsidiaries or affiliates, and may sometimes refer to the PwC
network. Each member firm is a separate legal entity. Please see www.pwc.com/structure for further details.