With the entry into force of the new 2024 Tax Law, Equatorial Guinea is committing to a more efficient tax system adapted to current economic dynamics. On December 6, the Presidential Building in Malabo hosted the launch of the regulation, presided over by Prime Minister Manuel Osa Nsue. The reform, which replaces the 2004 Law, promises not only to ease the burden on taxpayers but also to significantly enhance the State’s ability to increase revenue, optimize resource management, and streamline processes.
During the event, the Minister of Finance, Planning, and Economic Development, Iván Bakale Ebee Molina, highlighted that the tax reductions for individuals and businesses, such as lowering the Personal Income Tax from 35% to 25%, are designed to stimulate the economy while boosting fiscal revenue in the long term. “When businesses have greater capacity to reinvest, the effect translates into a more dynamic economy and, consequently, stronger state revenue,” he stated. According to the minister, this strategic approach will enable the government to create a virtuous cycle where economic recovery translates into greater public revenue.
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The reform of the legal framework also includes improvements in administrative procedures to facilitate taxpayers’ compliance with tax obligations. In a post-event interview, Cristilo Tobías, a representative of Pegasos, noted that the elimination of unnecessary procedures will benefit both taxpayers and the State.
“Under the previous system, the costs associated with tax payments discouraged citizens, limiting the tax authority’s ability to collect. Now, with a single process that integrates banks and the tax office, this barrier is removed, encouraging greater formalization,” he explained. This measure “promises” to attract a larger number of taxpayers, thereby increasing resources available for national development.
The Prime Minister emphasized that this tax modernization responds to the need to consolidate a fiscal system capable of supporting the country’s ambitious development plans. He also stressed that the new law aligns with international best practices, which could position Equatorial Guinea as a more attractive destination for foreign investment, creating a multiplier effect on public finances.
With this reform, the government aims not only to maximize collection efficiency but also to strengthen its capacity to finance public services and essential infrastructure projects for sustainable development.
