Guinea Personal Income Tax

Individuals resident in Guinea are subject to tax on worldwide income. Nonresidents are subject to tax on Guinea-source income only.

Individuals are considered resident if they meet either of the fol­lowing conditions:

  • They maintain a home in Guinea or stay there for more than six months in a year.
  • They are engaged in employment or self-employment activities in Guinea, unless they prove that these activities are incidental to activities performed abroad.

Income subject to tax

Employment income. Taxable income generally consists of all remuneration received, including, salaries, treatments, indemnities, allowances, premiums and bonuses paid, benefits in kind and benefits in cash. However, the following indemnities, allowances, bonuses or premiums are not taxable:

  • Housing
  • Transportation
  • Meals or food
  • Cost of living
  • Chalk

Self-employment and business income. In general, self-employed residents are subject to general income tax on their worldwide income from professional and commercial activities. Self-employed nonresidents are subject to general income tax on in­come derived from activities performed in Guinea.

Taxable income consists of total net income from all categories.

Taxable income from commercial activities includes all receipts, advances, interest and gains directly related to the activities.

Generally, taxable income is calculated on an accrual basis; how­ever, taxpayers may elect to calculate taxable income using a deemed-profits system if gross revenue does not exceed a certain amount.

Taxable income from professional activities is determined on a cash basis, meaning the difference between receipts and expenses paid during the calendar year, including gains or losses from the sale of professional assets.

A loss incurred in one category of income may not offset income from other categories. However, the loss may be carried forward for three years to offset income in the same category.

Investment income. Dividends and interest income from invest­ments in Guinea are subject to a withholding tax, which consti­tutes a prepayment of the general income tax (see Rates). Under certain conditions, this withholding tax is a final tax. The with­holding tax rate for dividends is 10%. The withholding tax rate for interest is 10%.

Directors’ fees are treated as investment income and are subject to general income tax at a rate of 10%.

If the payer is a resident of Guinea and if the nonresident recipi­ent does not have a business establishment in Guinea, the payer must withhold the final 15% general income tax on amounts paid to nonresidents for copyrights and for the use of intangible assets. The withholding tax rate on services fees paid to nonresident entities or individuals is 15%.

Capital gains. Gains derived from the transfer of shares are sub­ject to withholding tax at a rate of 10%.

Capital gains related to self-employment activities generally are included with other self-employment income and taxed as describ­ed in Self-employment and business income and Rates. However, capital gains from sales of fixed assets may be exempt from tax if reinvested.

Deductions

Deductible expenses. The following expenses are deductible:

  • Social security contributions
  • Amounts withheld by an employer for a legal pension plan

Personal deductions and allowances. No personal deductions or allowances apply if an employee receives only employment in come and does not elect joint taxation of the combined income of all household members. If joint taxation of the household is elected, individuals may take a personal deduction of GNF30,000 for each member of the household, up to a maximum of six persons.

Business deductions. The following expenses are deductible for commercial, professional and agricultural activities:

  • Expenses necessary to carry on the activities, including person­nel and rental expenses
  • Depreciation
  • Provisions for losses and expenses if the accrual method of accounting is used

Rates

Employment income tax. The following table presents the progres­sive tax rates on employment income.

Taxable income                                                                      Tax

Exceeding      Not exceeding                                               rate

GNF                     GNF                                                            %

0                        1,000,000                                                        0

1,000,000       5,000,000                                                          5

5,000,000     10,000,000                                                         10

10,000,000              —                                                            15

Tax withheld by an employer during the year is a final tax if an employee receives employment income only. However, if an em ployee receives other types of income, the withholding is a prepayment toward the general income tax (see General income tax).

General income tax. General income tax is levied on taxable in come. A withholding tax is levied separately on taxable income from commercial, professional and agricultural activities. The applic able rates are 35% for commercial activities, 30% for professional activities and 15% for agricultural activities. This withhold ing tax is a final, fixed rate general income tax for self-employed persons who do not elect the taxation of all household members and who have only one source of income that is taxed under a deemed-profits system. For self-employed persons with more than one source of income or for self-employed persons who are taxed on actual profits rather than deemed profits, the withholding tax is a prepayment that offsets the general income tax.

General income tax is levied at the following progressive rates.

Taxable income (GNF)

Exceeding                          Not exceeding

 

Tax rate

%

0 100,000 0
100,000 1,000,000 10
1,000,000 1,500,000 15
1,500,000 3,000,000 20
3,000,000 6,000,000 25
6,000,000 10,000,000 30
10,000,000 20,000,000 35
20,000,000 40

Nonresidents. If a payer is a resident of Guinea and if the non­resident recipient does not have a business establishment in Guinea, the payer must withhold the final 15% general income tax on the following gross amounts:

  • Amounts paid for independent professional services
  • Amounts paid to inventors
  • Amounts paid for services, regardless of their nature, materially rendered in Guinea

The withholding tax rate on services fees paid to nonresident entities and nonresident individuals is 15%.

Nonresidents who perform incidental activities for employers estab lished in Guinea are subject to withholding on their wages related to Guinean activities at the rates that apply to employment income. This withholding tax constitutes only a prepayment of tax. Non resident employees receiving wages from non-established employers for incidental Guinean activities are subject to general income tax instead of withholding.

Inheritance and gift taxes

Inheritances and gifts are subject to tax at progressive rates rang­ing from 1% to 3%, depending on the net value of the inheritance or the gift and on the beneficiary’s relationship to the deceased or donor.

Social security

The following social security contributions are required.

Paid by employers Rate (%)
Family allowances 6
Industrial accidents 4
Medical expenses and disability 4
Old age pensions and death benefits 4
Paid by employees

Medical expenses and disability

2.5
Old age pensions and death benefits 2.5

Contributions are levied on total remuneration paid, up to a month­ly ceiling of GNF1,500,000. Employees’ contributions are with­held monthly by employers.

Tax filing and payment procedures The tax year for individuals is the calendar year.

General income tax returns must be filed by 30 April following the close of the tax year. A self-employed individual subject to general income tax must file an income tax return by 30 April.

General income tax computed is payable on receipt of a tax assess ment.

Tax treaties

Guinea has entered into double tax treaties with France and the United Arab Emirates.

Entry visas and permits

Foreign nationals, even those classified as residents, must obtain visas to enter Guinea. Visas may be obtained from Guinean con­sulates and embassies abroad.

Nationals of member countries of the Economic Community of West African States (ECOWAS; the French translation is Com­munauté Économique des Etats de l’Afrique de l’Ouest or CEAO) and nationals from certain countries that have concluded special agreements with Guinea do not need visas to enter the country.

A short-term permit is issued for initial entry into Guinea and is valid for a period ranging from one day to a maximum of three months.

Work permits and self-employment

No visa authorizes an individual to work. A work permit autho­rized by the national employment and labor office (AGUIPE) must be obtained.

The request for an initial work permit is made by a letter from a prospective employer explaining the reasons why the applicant is being hired. It should be accompanied by four copies of the expa­triate work contract, two identification photographs, hotel reser­vations or an invitation letter, and a return flight ticket.

When reviewing work and residence permit applications, the government of Guinea considers the benefit of an individual’s presence in the country and his or her anticipated compliance with the laws and regulations of Guinea.

It is possible to change employers after the applicant receives a permit.

Foreign nationals may establish businesses in Guinea. In addition, foreign companies may set up subsidiaries headed by foreign nationals.

Residence permits

Long-term residence permits are issued to foreign nationals intend ing to stay in Guinea for periods exceeding three months. These permits must be renewed annually. Permanent residence permits are not available in Guinea.

Residents themselves must take the necessary steps to obtain long-term residence permits and multiple-entry and exit visas.

Embassies or consulates abroad provide applicants with the documentation that must be filled out. An international vaccina­tion certi ficate for yellow fever must be presented to the embassy or consulate abroad, or at the port of entry in Guinea. Reasons for refusal are indicated by the embassies.

The costs of short-term and long-term permits vary. The prices are published by the Ministry of Economy and Finance (MEF). Both types of permit must be renewed every year.

Family and personal considerations

Family members. The spouse of a permit holder automatically receives a residence permit to live in Guinea. If the spouse wishes to work, he or she must apply for a work permit independently of the principal permit holder.

Driver’s permits. Foreign nationals may not drive legally in Guinea using their home-country driver’s licenses. However, they may drive legally with an international driver’s license for the duration of the license. On the expiration of a foreign national’s interna­tional driver’s license, he or she has the following options:

  • To renew the international driver’s license
  • To request a Guinean driving authorization
  • To request a Guinean driver’s license

To obtain a Guinean driver’s license, individuals must take a writ­ten exam similar to the one given in France.