Verified Facts
The tax rates in Sao Tome and Principe 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
Sao Tome and Principe operates a territorial taxation system, where individuals and companies are taxed only on income earned within the country. This means that foreign-sourced income is generally not subject to taxation in Sao Tome and Principe, unless it is remitted to the country. To be considered a tax resident, an individual must have a permanent home in Sao Tome and Principe, or spend more than 183 days in the country during a calendar year.
The tax system in Sao Tome and Principe is relatively straightforward, with a focus on simplicity and ease of compliance. The government has implemented various measures to encourage foreign investment and stimulate economic growth, including the creation of free zones and special economic areas. These zones offer a range of incentives, including reduced tax rates, simplified customs procedures, and streamlined regulatory requirements.
Personal Income Tax
| Income Bracket (STN) | Tax Rate |
|---|---|
| 0 - 50,000 | 10% |
| 50,001 - 100,000 | 15% |
| 100,001 - 200,000 | 20% |
| 200,001 - 500,000 | 22% |
| 500,001 and above | 25% |
| Personal income tax in Sao Tome and Principe is levied on individuals who are tax residents in the country. Taxpayers are entitled to various deductions and allowances, including a personal allowance, mortgage interest relief, and charitable donations. Tax returns must be filed by the end of April each year, and taxpayers can choose to file manually or electronically. |
Corporate & Business Tax
- The corporate tax rate in Sao Tome and Principe is 25%, which applies to all companies registered in the country.
- Small businesses and start-ups may be eligible for incentives and exemptions, including reduced tax rates, simplified regulatory requirements, and access to financing.
- Free zones and special economic areas offer a range of benefits, including reduced tax rates, streamlined customs procedures, and simplified regulatory requirements.
- Companies must register with the tax authorities within 30 days of commencement of business, and must file annual tax returns by the end of April each year.
- Companies may also be required to withhold tax on certain types of income, including dividends, interest, and royalties.
VAT / Sales Tax
- The standard VAT rate in Sao Tome and Principe is 15%, which applies to most goods and services.
- Reduced VAT rates apply to certain goods and services, including basic foodstuffs, medicines, and educational materials.
- Exemptions apply to certain goods and services, including financial services, insurance, and healthcare.
- Tourist refund schemes are available for international visitors, who can claim a refund of VAT paid on certain goods and services.
For Expats & Foreign Workers
- Tax residency rules apply to individuals who spend more than 183 days in Sao Tome and Principe during a calendar year.
- Double taxation treaties are in place with several countries, including Portugal, Gabon, and Equatorial Guinea.
- Social security contributions are mandatory for all employees, including foreign workers.
- Remittance rules apply to individuals who remit income to Sao Tome and Principe from abroad.
- Special tax regimes apply to certain types of foreign workers, including diplomats, international organization employees, and foreign government officials.
- Tax clearance certificates are required for all foreign workers who leave the country, to ensure that all tax obligations have been met.
Crypto & Investment Income
- Investment income, including dividends, interest, and capital gains, is subject to taxation in Sao Tome and Principe.
- Cryptocurrency is considered a taxable asset, and gains from the sale or exchange of cryptocurrency are subject to capital gains tax.
- Dividends received from foreign companies are subject to taxation in Sao Tome and Principe, unless a double taxation treaty applies.
- Royalties and other types of passive income are also subject to taxation in Sao Tome and Principe, unless a specific exemption or reduced rate applies.