Equatorial Guinea is a member of the Organisation for the Harmonization of Business Law in Africa, which implements fair business laws and institutions, as well as promoting domestic and foreign investment for its members.
Grants are available to those who wish to do business in Equatorial Guinea; in 2010, the value of grants excluding technical cooperation reached $75,980,000, with technical cooperation grants at $13,720,000.
Substantial tax advantages are also given for businesses aiming to hire and train people in Equatorial Guinea. Foreign equity ownership is not limited, but businesses may benefit from having a national majority partner.
Tax in the region is relatively low; the corporate tax rate is 35% and the minimum corporate tax rate is 1% of annual turnover. The highest personal income tax rate is around 20%, with a domestic turnover tax of 5% on basic goods and services and 12% on luxury goods and services. Any timber exported from the country is taxed at 20% of its value, and a tax of 6.25% is applied to petroleum revenues.
With tax rates remaining low, foreign businesses are increasingly opening operations in Equatorial Guinea. International companies operating in the country include BG, Glencore, Tullow, Emerson, Marathon Oil, ExxonMobil, and Hess.
To find out more about Equatorial Guinea’s membership of international organisations, click here.
To read more about incentives and grants available in Equatorial Guinea, please see the Equatorial Guinea Investment Guide 2015.