Population: (2022 est.) 1,558,000
Monetary Unit: Central African CFA franc
Official languages: Spanish, French, Portuguese
Equatorial Guinea, officially known as the Republic of Equatorial Guinea, is a country in Central Africa. Malabo is the capital and Bata is the largest city of Equatorial Guinea. Oil production, forestry, farming and fishing are the main contributors of the country’s GDP. Its main trading partners are the United States, China, Spain, Japan and France
The public holidays in Equatorial Guinea are as follows;
- 1 Jan New Year’s Day
- 2 Jan New Year Holiday
- 7 Apr Good Friday
- 1 May Labour Day
- 5 Jun President’s Day
- 8 Jun Corpus Christi
- 3 Aug Freedom Day
- 15 Aug Constitution Day
- 12 Oct Independence Day
- 8 Dec Immaculate Conception
- 25 Dec Christmas Day
Any probation period under a contract must be for the first 90 days
The worker is entitled to one month of paid annual leave, for each year of continuous work. After 10 years of service, annual leave shall be increased one day per year worked.
Women shall be entitled to maternity leave as from 6 weeks before the birth, after having informed the employer and presented the medical certificates attesting the pregnancy. Maternity leave benefits shall be paid to all women covered by the social security, during the first 6 weeks before the birth and 6 weeks after the birth.
There is no paternity leave
Employees receive sick pay after 3 days if they have contributed in the past year
For redundancies the employee will receive 45 days’ pay for each year of service
13th / 14th Month Pay: This is mandatory in Equatorial Guinea, with a requirement backed by law to pay the 13th month salary equating to 15 days pay to be given before December 24th. The 14th month salary is also payable before the 12th of October. Both bonuses are payable after one year of service.
To enter Equatorial Guinea, a visitor must apply for a temporary visa. Contacting an embassy in Belgium, Cameroon, China, Ethiopia, France, Gabon, Morocco, Nigeria, the Russian Federation, Spain, or the United States will get you this visa. Foreign nationals who reside in nations without Equatorial Guinea embassies may apply for a temporary visa in any nation that hosts one. Americans and Tunisians do not need visas to enter the country. The labour ministry issues the following five types of work permits:
- Permit A (PA) is granted to an employee who will work in a single work location for less than six months. It is not renewable.
- Initial Permit B (IPB) is granted to an individual who will engage in an established profession, working place or activity. It is valid for one year.
- Permit B Renewed (PBR) is granted to individuals holding IPB at the end of the validity period for IPB. It is valid for two years.
- Permit C (PC) is granted to individuals holding PBR at the end of the validity period for PBR. It is valid for three years.
- Permanent Permit (PP) is granted to individuals holding PC at the end of the validity period for PC.
Before a foreign worker starts working in Equatorial Guinea, a company needs to apply for a work permit. A request must be made in writing to the employment office of the city where the employer is located or where the employment agreement will be implemented. An individual must apply for the right to recruit before submitting a work visa application.
According to Equatorial Guinea’s labor legislation, article 83, a corporation may terminate employment agreements if there is a reduction in the number of employees or if the contract has expired. Additionally, it specifies that the Company may terminate an employee’s contract for equivalent economic, technological, structural, or other grounds. After six months of service, there is a one-month notice period. The employee must provide three months’ notice before being laid off. For each year of service, the employee will receive 45 days of pay in the event of a redundancy.
These are benefits mandated by law. These include probationary period, annual leave, public holidays, sick leave, maternity leave, overtime pay, notice period, and severance pay. Statutory benefits also include social security benefits.
The duration of work cannot exceed 8 hours per day or 48 hours per week, of daily work. If mixed, the duration of work cannot exceed 6 hours per day, and 36 hours per week.
Regular working time can be extended up to 2 hours per day, respecting a maximum of 200 hours per year, with the finality of performing preparatory or complementary work, which shall be accomplished outside the habitual working time, or to allow the employer to face extraordinary increase of work. Overtime work hours shall be paid an increase of 25% over the regular amount due for an hour of work performed during the day; and 50% over the regular amount when performed during the night, or when they constitute an extension of the mixed working time entering the night period.
The notice period is one month after six months of service. For redundancies the employee must have 3 months’ notice
Yearly Taxable Income (XAF*) Tax Rate (%)
0 – 1,000,000 0
1,000,000 – 3,000,000 10
3,000,000 – 5,000,000 15
5,000,000 – 10,000,000 20
10,000,000 – 15,000,000 25
15,000,000 – 20,000,000 30
20,000,000 – above 35
Employers and employees must contribute monthly to the National Social Security Fund (INSESO) and the Work Protection Fund. Employer contributions are 1% of the gross salary to the Work Protection Fund and 21.5% to INSESO. The rates for employees are 0.5% of net salary (net after the deduction of tax and INESO contributions) to the Work Protection Fund and 4.5% of gross salary to INSESO. The net salary is based on the administrative practice to calculate and pay both contributions based on the gross salaries.
The extent to which a deduction from income will be allowed depends on the category of income. Allowable deductions include business expenses, contributions to pension funds (under specific conditions), interest on loans obtained to build or repair the taxpayer’s main residence in EG, alimony and payments made to the welfare fund on behalf of domestic employees. For salaries, wages, pensions and annuities, a lump-sum deduction for business expenses of 20% of income is available, subject to a maximum deduction of XAF1 million.
Expenses incurred that are necessary for carrying out a company’s taxable activity in EG are deductible. To be deductible, depreciation must be recorded in the accounting books. A company can defer depreciation claims indefinitely if it is in a loss position.
VAT is an indirect tax on consumption based on turnover. The standard VAT rate is 15%. A rate of 0% is applicable to a specific list of products and equipment provided in the Tax Code (e.g. certain medical products, some equipment for construction). A reduced rate of 6% is applicable to a limited list of basic consumables and books.
WHT in the general regime (i.e. any sector other than the oil and gas sector). According to the 2021 Budget Law of Equatorial Guinea, there is a 15% tax withheld on the gross incomes obtained in Equatorial Guinea by non-resident entities and for individuals. There is a 15% WHT on royalties for non-CEMAC residents. Dividends and interests paid to non-residents are subject to 25% WHT.