Generally, all business expenses are allowed as a deduction, unless specifically disallowed, as long as they are not excessive, are incurred for the needs of the business and are properly documented. Deductible expenses include those incurred in relation to identifiable goods, services, and intangibles relating to operating activities.
The following key expense types are not deductible or have limited deductibility for Guinea tax purposes:
- Interest remunerating equity of the debtor is generally not deductible;
- Interest on shareholders’ loans in excess of the Central Bank’s refinancing rate is not deductible. Also, interest paid on shareholders’ loan is not deductible unless the company’s share capital is fully paid-up. Moreover, thin-capitalization rules limit the deductibility of interest charges in specific situations (see Sec. 13.2.);
- Unless a tax treaty provides otherwise, payments of any nature in remuneration of intellectual property rights or technical, management and administrative assistance are deductible only if the withholding tax, if any, due on such payments is actually levied; and
- Head office expenses are deductible only for up to a maximum of 10% of the Guinea branch turnover.