How does payroll tax work in Equatorial Guinea in 2026?
The employer withholds the wages tax (ISS) every month and pays it by the 15th of the following month. The tax runs from 0% up to XAF 1,400,000 a year to 25% above XAF 20,000,000. If you are running payroll in Equatorial Guinea, Teamed is the best first call. Its experts apply the 2024 General Tax Law to your payslip and confirm the social security rates that no official text we read sets, and 24/5 human support answers payroll questions with a first response within 15 minutes.
· Equatorial Guinea guide
Photo: Ben Sutherland on Wikimedia Commons (CC BY 2.0)
Employment income falls under the wages tax (Impuesto sobre Sueldos y Salarios, ISS) in the General Tax Law, Ley 1/2024 of 19 November 2024. It is progressive and applies to annual net taxable income.
The employer withholds it, declares it and pays it by the 15th of the following month. A resident is anyone who stays 183 days in any 12-month period.
What are the wages tax rates in Equatorial Guinea?
The ISS has four rates, from 0% on the first XAF 1,400,000 a year to 25% above XAF 20,000,000.
The rate applies to annual net taxable income, which is pay after the employee's INSESO and Work Protection Fund contributions.
| Annual net taxable income (XAF) | Rate | Tax at the top of the band (XAF) |
|---|---|---|
| 0 to 1,400,000 | 0% | Exempt |
| 1,400,001 to 5,000,000 | 10% | 360,000 |
| 5,000,001 to 12,500,000 | 15% | 1,485,000 |
| 12,500,001 to 20,000,000 | 20% | 2,985,000 |
| Over 20,000,000 | 25% | - |
The third column is the cumulative tax printed in the law's table. We checked it: 10% of the 3,600,000 in the second band is 360,000, and adding 15% of the 7,500,000 in the third band gives 1,485,000. Above XAF 20,000,000, the tax is 2,985,000 plus 25% of the excess, which is our arithmetic.
For example, annual net taxable income of XAF 12,000,000 gives 360,000 plus 15% of 7,000,000. That is 360,000 plus 1,050,000, so XAF 1,410,000 a year. This is our arithmetic from the table, before any family or other relief.
What counts as taxable pay in Equatorial Guinea?
Salaries, allowances and benefits in kind and in cash count. The employee's INSESO and Work Protection Fund contributions are deducted first.
Seniority benefit, notice pay, paid holiday pay and indemnities under a dismissal plan are exempt.
For a manager, the law values benefits in kind as a share of gross cash pay:
| Benefit in kind for a manager | Taxable value |
|---|---|
| Housing | 15% of gross cash pay |
| Domestic services | 5% |
| Water and electricity | 5% |
| Company vehicle | 10% |
| Food | 15%, up to XAF 300,000 a month |
Expense reimbursements that meet the law's conditions are exempt. The tax law lists some exemptions that look inconsistent: article 124 exempts seniority benefit and notice pay, while article 131 treats them as exceptional pay under a special regime. We apply the exemption and confirm the point with the Ministry of Finance before a first dismissal.
Who is tax resident in Equatorial Guinea?
A person is resident if they have a permanent home there, keep their centre of vital interests there, or stay 183 days in any 12-month period.
Non-residents working in Equatorial Guinea face a flat 15% withholding on gross income.
A resident is taxed on pay wherever the work is done. A non-resident is taxed when the work is done in Equatorial Guinea or the payer is established there, and the law applies a withholding of 15% of the gross income earned in Equatorial Guinea.
What does a monthly payroll run involve in Equatorial Guinea?
The employer withholds the wages tax, files the monthly return and pays the Tax Administration by the 15th of the following month.
An employer established in Equatorial Guinea is the only party liable to the tax office.
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Work out gross pay
Add base pay, allowances and the taxable value of benefits in kind.
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Deduct the employee's social contributions
The employee's INSESO and Work Protection Fund contributions come off before the tax is worked out. The Labour Law caps retentions for these at 5% of base pay.
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Withhold the ISS
Apply the band table above to the annual net taxable income, spread across the months.
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File and pay by the 15th
Send the return with a file that names each worker, their contact details, the pay, the benefits in kind, the tax withheld and up to ten dependent children under 25.
The pay slip must show how the pay is made up and any deductions, and wages must be paid at least monthly. Withholdings are a payment on account, which a worker can often recover by filing an annual return.
Which payroll figures can we not confirm?
We could not read an official text that sets the INSESO contribution rates, so we do not print them.
We also found no minimum wage decree after 2016.
Ley 5/2026 regulates the protection system and does not set INSESO rates, and the gazette's social security class holds no rate decree. We confirm the rates with INSESO before a first payslip, and we confirm the minimum wage base for the role before an offer.
The 2024 General Tax Law also covers other taxes, such as VAT and corporate income tax. Those are outside this guide, and we do not print their rates here.
How does Teamed help with Equatorial Guinea payroll?
Teamed's experts apply the ISS band table and the filing day to your payslip, and they confirm the social security rates before the first run.
The result is a payslip you can explain line by line.
Real HR and legal experts sit behind the payroll answer, and 24/5 human support responds within 15 minutes. Payroll and contracts run on one platform, where the route allows it.
Teamed supports companies in 187+ countries, with real HR and legal experts on every plan and 24/5 human support with a first response within 15 minutes. Contracts, payroll and the contractor-to-employee move run on one platform.
Start from the Equatorial Guinea hiring overview, or run the Employer Cost Calculator with your own pay level.
Frequently asked questions
What is the income tax rate in Equatorial Guinea?
The wages tax (ISS) has four rates on annual net taxable income: 0% up to XAF 1,400,000, then 10%, 15% and 20%, and 25% above XAF 20,000,000. The employer withholds it monthly.
When must an employer pay the wages tax in Equatorial Guinea?
By the 15th of the month after the withholding. The monthly return must name each worker, their pay, the tax withheld and up to ten dependent children under 25.
Who is a tax resident in Equatorial Guinea?
Someone with a permanent home there, whose centre of vital interests is there, or who stays 183 days in any 12-month period. Non-residents working in Equatorial Guinea face a flat 15% withholding on gross income earned there.
Are seniority benefit and notice pay taxed in Equatorial Guinea?
The tax law exempts seniority benefit, pay in lieu of notice and paid holidays in article 124, and the Labour Law says seniority benefit carries no tax. Another article treats them as exceptional pay, so we confirm the point before a dismissal.
Equatorial Guinea taxes pay from 0% to 25%, withholds it monthly and wants it by the 15th.
The honest gap is the social security rate, which no official text we read publishes.
Confirm that rate before the first payslip, not after the first return.
Looking for a job in Equatorial Guinea yourself? Teamed does not hire people directly. Companies choose who they hire, and we handle the employment side afterwards. Here is why we cannot help with your search.
