Tax laws Guinea
Guinea's tax system encompasses various direct and indirect taxes, including personal and corporate income taxes, value-added tax (VAT), excise duties, and specific taxes such as the "contribution des patentes."
Personal Income Tax:
Progressive Tax Rates: Guinea employs a progressive tax system with rates ranging from 0% to 40%, depending on income levels.
Taxable Income Brackets:
Up to GNF 1,400,000: 0%
GNF 1,400,001 to GNF 5,000,000: 10%
GNF 5,000,001 to GNF 10,000,000: 15%
GNF 10,000,001 to GNF 15,000,000: 20%
Above GNF 15,000,000: 25%
Corporate Income Tax:
Taxable Profits: Both resident and non-resident companies are subject to corporate income tax (CIT) on their Guinean-source income.
Tax Rates: The CIT rate is 35% on taxable profits.
Value-Added Tax (VAT):
Standard Rate: Guinea imposes a VAT at a standard rate of 18% on most goods and services.
Exemptions: Certain essential goods and services may be exempt from VAT or subject to reduced rates.
Excise Duties:
Alcoholic Beverages: Excise taxes are applied to imported alcoholic beverages, with rates varying based on the type and alcohol content.
Tobacco Products: Excise duties are levied on tobacco products, with rates adjusted periodically to align with regional standards.
Vehicles: Imported vehicles are subject to excise duties, calculated based on engine capacity and age.
Contribution des Patentes:
Nature of Tax: The "contribution des patentes" is a direct tax historically levied on individuals or entities engaged in economic, commercial, industrial, or professional activities.
Structure: It includes a fixed fee and a proportional fee based on the rental value of professional premises.
Application: The fees are determined by general or special tariffs depending on the profession and are detailed in annexed schedules. Activities not specifically listed are still subject to the tax based on analogous professions.
Recent Tax Developments:
- Finance Law 2022: Guinea enacted the Finance Law for 2022 through Ordinance O/2021/0011/PRG/CNRD/SGG, signed on 31 December 2021. This law introduced various tax measures aimed at enhancing domestic revenue mobilization.
Compliance and Administration:
Tax Authority: The General Tax Code (GTC) imposes Guinean tax on the source incomes of both resident and non-resident companies.
Filing Requirements: Companies are required to file annual tax returns, and maintain proper accounting records to support income and expense claims.
Withholding Taxes: Certain payments, such as dividends, interest, and royalties, may be subject to withholding tax at rates specified in tax treaties or local legislation.
Note: Tax laws and rates are subject to change. It's advisable to consult the official Guinean tax authority or a tax professional for the most current information.
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