25% standard rate, confirmed via three independent sources including a citizenship/tax-residency specialist citing the underlying Codigo do IRC directly. A 20% withholding tax may apply in certain cases, and a reduced 10% rate is available for some new business activities. An earlier version of this page incorrectly displayed the World Bank's total tax-and-contribution burden (approximately 37% of commercial profit) as if it were the statutory corporate rate - that was a different metric entirely and has been corrected.
Progressive, up to a 25% top rate, on worldwide income for residents (180+ days present, or habitual residence) and Sao Tome-source income for non-residents. Capital income and certain capital gains are generally taxed separately at a flat 15% via final withholding rather than the progressive scale.
15% standard rate, in effect since June 2023. A simplified regime offers reduced rates for smaller businesses: 7% for turnover up to STN 1,000,000, and a flat 2% annual tax for turnover up to STN 100,000. Basic foodstuffs and certain essential services may qualify for a further-reduced 5% rate; health, education, and financial services are exempt.
An individual is tax resident if present in Sao Tome and Principe for more than 183 days, confirmed via a specialist citizenship/tax source. Residents are taxed on worldwide income; non-residents are taxed only on Sao Tome-source income (a territorial approach for non-residents specifically) - notably, non-resident individuals pay no tax on foreign-sourced income, capital gains, wealth, or inheritance, confirmed via two independent sources, making residency status a materially important planning threshold.
No Controlled Foreign Company regime was identified in available sources this session. This is a genuine gap rather than a confirmed absence.
No statutory thin capitalization ratio was identified in available sources this session.
No domestic FBAR/Form 8938-equivalent requiring Sao Tome and Principe residents to self-report their own foreign accounts was identified. Sao Tome and Principe is confirmed as a non-FATCA country - no FATCA agreement exists with the United States, per a specialist source. Separately and independently of local law, US citizens and Green Card holders with Sao Tome and Principe accounts remain obligated to file FinCEN Form 114 (FBAR) once aggregate foreign accounts exceed USD 10,000, and potentially Form 8938, regardless of the absence of a local FATCA agreement.
Sao Tome and Principe's primary and most substantive tax treaty is with Portugal (signed 2015, effective 2018), confirmed via a dedicated treaty-analysis source, providing conventional double-tax relief mechanisms including residency tie-breaker rules for dual residents. Additional treaty relationships with Angola and Cape Verde are referenced by one source but not independently corroborated this session. Sao Tome and Principe has no bilateral tax treaty with the United States, the United Kingdom, or Canada, confirmed directly via a specialist tax source.