Taxes in São Tomé and Príncipe

The main legal bases are the Código Geral Tributário under Law 6/2007 and the Código de Processo e Procedimento Tributário under Law 7/2007, as amended by Decreto-Lei 22/2016. The tax year follows the calendar year, and taxes are generally stated in dobra (Dbs.). The Ministério das Finanças oversees the system. The DI administers domestic taxes, while the Delegação dos Impostos do Príncipe handles tax matters on Príncipe under national rules. The Autoridade Geral Aduaneira (AGA) has handled customs since 1 November 2024, replacing the former DGA. Tax disputes go to the Tribunal Tributário Nacional or, for regional violations, a Tribunal Tributário Regional. The Sistema Integrado Tributário (SIT) supports tax administration. The Caixa de Correio Electrónico Fiscal (CCEF) provides an electronic tax mailbox, and E-Factura supports electronic invoicing. Regimes with contabilidade organizada use electronic filing. A NIF is required for payments to the state. Businesses with turnover of at least Dbs. 1,000,000, and businesses using organized accounting, use certified invoicing software. For organized IRS or IRC accounting, cash payments of Dbs. 10,000 or more are not permitted; payment uses a bank transfer, point-of-sale system, named cheque or direct debit. Individuals pay IRS on income in categories A for employment, B for independent activity, C for capital income and D for capital gains. The recorded annual progressive bands are 0% up to Dbs. 11,700,000, 10% up to Dbs. 50,000,000, 13% up to Dbs. 100,000,000, 15% up to Dbs. 150,000,000, 20% up to Dbs. 240,000,000 and 25% above Dbs. 240,000,000. Salary withholding rates recorded for the system are 8%, 11%, 13%, 18% and 23%. The 2023 budget also introduced a monthly band above Dbs. 35,000 with a 30% rate and a Dbs. 3,754 deduction. Independent workers in category B generally make three advance payments by the end of June, September and December, together totaling 75% of the previous assessment. The research record also identifies a 20% IERS charge on disposable income above Dbs. 50,000, but the 2026 budget did not mention it again, so its current application needs confirmation from the DI. Companies pay IRC. Resident companies are generally taxed on worldwide income, while non-resident companies are covered for São Tomé and Príncipe-source income or income connected with an estabelecimento estável, meaning a fixed business presence. The standard IRC rate is 25%, and a 20% withholding rate applies to certain income. A company declares the start of its activity at least 15 days beforehand. Grupo 1 taxpayers with organized accounting submit the annual return and accounting and financial data by 30 April of the following year. Grupo 2 taxpayers using simplified records submit the return in February. Changes and termination are generally reported within 30 days. Companies make three advance payments in June, September and December. An annual assessment is payable within 30 days, with up to three monthly instalments available. Under the 2026 budget, minimum IRC is 2 per 1,000 of turnover, subject to a minimum of Dbs. 2,400. Tax-exempt companies still file an annual return. Investment incentives depend on the applicable regime and an application; they do not arise automatically. IVA has applied since 1 June 2023 at a standard rate of 15%. A 7.5% rate covers goods and services listed in Annex I, including basic items such as rice, flour, pasta, bread, milk, beans, oil, soap, sugar and salt, as well as specified health, education, water and electricity services. The special IVA regime applies to businesses with turnover below Dbs. 1,000,000. Under the recorded guidance, it uses 2% with a minimum of Dbs. 167 for turnover up to Dbs. 100,000, and 5% of turnover above that level. Businesses in this area use E-Factura and electronic declarations. An input-tax surplus can be reported for three months before a refund request. The refund application is electronic and requires matching E-Factura records, complete invoices, no outstanding IVA declarations and a bank account. A refund is due by the end of the fourth month after the application; interest can accrue afterwards. IEC applies to alcohol, tobacco, sugary products and other harmful products in both imports and domestic transactions. The former Imposto sobre Consumo was abolished when IVA began, apart from older outstanding claims. The Imposto Ecológico sobre a Importação (IEI) is charged at customs by weight or volume. Recorded rates include Dbs. 0.20 per kilogram for food, Dbs. 0.80 per litre for beverages, Dbs. 20 per kilogram for tobacco, Dbs. 0.20 per kilogram for construction materials, Dbs. 0.30 per litre for petroleum products, Dbs. 0.50 per kilogram for skin and cleaning products, Dbs. 1 per kilogram for chemicals and photographic products, Dbs. 3 per kilogram for plastic, Dbs. 2 per kilogram for rubber and Dbs. 1 per kilogram for transport materials. Some special items reach Dbs. 80 per unit. Exemptions include the cesta básica, duty-free imports, the special IVA regime, kerosene, medicines, medical and disability equipment and renewable-energy equipment. The AGA and the environmental authority oversee these charges. Other taxes include Imposto Predial Urbano on urban property, SISA on onerous real-estate transfers, taxes on inheritances and gifts, Imposto sobre Veículos Automóveis and Imposto de Selo. Stamp duty covers specified acts, transactions and transfers, with payment generally due by the 10th of the following month. Businesses in commerce, industry and services file an annual declaration and keep supporting records for five years. Under the 2026 budget, small sellers of cocoa, coffee, vanilla and agricultural products use 1% self-assessment made by the buyer, together with a monthly named list. Fuel, jet fuel, gas oil and butane transactions within the IVA regime are exempt from 1% stamp duty, while importers are excluded from that exemption. Imports and exports pass through GUCE, the electronic single window. A registered despachante submits the declaration with the invoice and, where required, freight, origin and quality documents. The normal sequence is declaration, payment of taxes and charges, joint inspection and sealing, followed by an Ordem de Saída. Customs payments are currently made through Banco Internacional de STP at customs offices, using cash or cheque. Import charges can combine customs duty, IVA, IEC and IEI. The cesta básica retains full import-duty exemption. The DI can correct a return or issue an official assessment. A taxpayer can challenge an IVA assessment within 15 days after service; the DI has 45 days to decide, and failure to decide is recorded as implied acceptance. Judicial challenges follow the CPPT. Tax debts can proceed to enforcement before the Tribunal Tributário Nacional, while regional tax violations can be heard by a Tribunal Tributário Regional. The recorded limitation period for an IVA assessment ends at the close of the fifth following year. Late payment can produce interest, penalties and compulsory enforcement. The DI is expanding risk-based controls, electronic administration and a large-taxpayer unit. Non-residents receiving São Tomé and Príncipe-source income generally face withholding tax and may need tax representation or CCEF access, especially where no estabelecimento estável exists. IRS and IRC rules allow a foreign-tax credit for foreign income up to the amount of São Tomé and Príncipe tax attributable to that income. A double-tax agreement with Portugal was signed on 13 July 2015 and ratified in 2016; it covers IRS, IRC and stamp duty on acknowledged tax claims. Import and export allocation mainly follows source, permanent-establishment and applicable treaty rules. The 2026 OGE authorizes a one-year review aimed at harmonizing the customs tariff, IVA, IEC and IRS and does not authorize new autonomous taxes. It also allows the DI to offset certified tax debts against state counterclaims. Planned measures linked to the IMF programme, such as further IVA administration, a 5% advance IVA charge for informal import sellers, digital tax administration and stronger arrears collection, should not be treated as fully effective law unless confirmed by a current OGE, statute or DI instruction.