Equatorial Guinea has introduced General Tax Law No. 1/2024, officially published in the Official State Gazette (BOE) on 6 December 2024. While the law took effect upon publication, the tax authorities will enforce the new rules from 1 January 2025.

Key Payroll-Related Amendments:

• Personal Income Tax is now referred to as the Tax on Salaries and Wages (ISS).
• The law introduces new regulations regarding:
• When an employee becomes subject to ISS
• Which values and employees are exempt from ISS
• The timing of the taxable event and enforceability of ISS
• How employer-provided benefits in kind are taxed
• Allowable tax deductions (notably, the 20% professional expenses tax deduction has been repealed)
• New annual tax tables and a fixed rate for expatriate employees
• A new approach to taxing exceptional remuneration

For full details, please refer to the attached document.

Important Notes:

• Due to a lack of clarity in the legislation, we are awaiting further guidance from the Tax Authority on the exact calculation method for exceptional remuneration.
• The amendments may introduce new statutory reporting requirements.

We will provide further updates as soon as more information becomes available.