Verified Facts
The tax rates in Guinea-Bissau range from 10% to 25% for personal income tax, with a corporate tax rate of 25% and a value-added tax (VAT) rate of 15%.
Tax laws change frequently. Always consult a qualified tax professional for advice specific to your situation. This is a general guide only.
Quick Facts
Tax System Overview
Guinea-Bissau has a territorial taxation system, where only income earned within the country is subject to tax, regardless of the taxpayer's residence. However, individuals who are considered tax residents are also subject to tax on their worldwide income. Tax residency is determined by the number of days spent in the country, with individuals who spend more than 183 days in a calendar year considered tax residents.
The tax system in Guinea-Bissau is relatively simple, with a limited number of taxes and a straightforward tax code. However, the tax authorities may not always have the resources or capacity to effectively enforce tax laws, which can lead to inconsistencies and uncertainties for taxpayers. As a result, it is essential for individuals and businesses to consult with a qualified tax professional to ensure compliance with all tax laws and regulations.
Personal Income Tax
| Income Bracket (XOF) | Tax Rate |
|---|---|
| 0 - 500,000 | 10% |
| 500,001 - 1,000,000 | 15% |
| 1,000,001 - 2,000,000 | 20% |
| 2,000,001 - 5,000,000 | 22% |
| above 5,000,000 | 25% |
Personal income tax in Guinea-Bissau is levied on individuals who earn income from employment, self-employment, or other sources. Taxpayers are entitled to various deductions and allowances, including a personal allowance, a dependent spouse allowance, and a child allowance. Tax returns must be filed annually, and taxpayers who fail to file or pay their taxes on time may be subject to penalties and interest.
Corporate & Business Tax
- The corporate tax rate in Guinea-Bissau is 25%, which applies to all companies, including foreign companies with a permanent establishment in the country.
- Small businesses and startups may be eligible for incentives, such as reduced tax rates or tax holidays, under certain conditions.
- Guinea-Bissau has several free zones, which offer tax exemptions and other benefits to companies that operate within these zones.
- Companies must register with the tax authorities and obtain a tax identification number to operate in the country.
- Companies are also required to file annual tax returns and pay their taxes on time to avoid penalties and interest.
VAT / Sales Tax
- The standard VAT rate in Guinea-Bissau is 15%, which applies to most goods and services.
- A reduced VAT rate of 10% applies to certain essential goods, such as food and medicine.
- Some goods and services, such as education and healthcare, are exempt from VAT.
- There is no tourist refund scheme in Guinea-Bissau, which means that tourists cannot claim a refund of VAT paid on goods and services purchased in the country.
For Expats & Foreign Workers
- Tax residency rules in Guinea-Bissau are based on the number of days spent in the country, with individuals who spend more than 183 days in a calendar year considered tax residents.
- Guinea-Bissau has double taxation treaties with several countries, including Portugal, Senegal, and Guinea, which can help to avoid double taxation of income.
- Foreign workers may be required to contribute to the social security system in Guinea-Bissau, which provides benefits such as pension, healthcare, and unemployment insurance.
- Foreign workers may also be subject to remittance rules, which require them to remit a portion of their income to their home country.
- Expats and foreign workers should consult with a qualified tax professional to understand their tax obligations and ensure compliance with all tax laws and regulations.
- Expats and foreign workers may also be eligible for tax credits or tax deductions in their home country, which can help to reduce their overall tax liability.
Crypto & Investment Income
- Investment income, such as dividends, interest, and capital gains, is subject to tax in Guinea-Bissau, with the tax rate depending on the type of income and the taxpayer's residency status.
- Cryptocurrency is not specifically regulated in Guinea-Bissau, but it is subject to the same tax rules as other investments, with gains and losses taxed as capital gains.
- Taxpayers who earn investment income or cryptocurrency income must declare this income on their tax return and pay the applicable tax.
- Taxpayers may be eligible for tax deductions or tax credits on their investment income, which can help to reduce their overall tax liability.