Cape Verde vs Sierra Leone
Tax Rate Comparison
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๐ฐ Personal Income Tax Calculator
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๐จ๐ป Cape Verde โ Cape Verde Tax System
Cape Verde (Cabo Verde) has a progressive income tax system up to 27.5%. IVA (VAT) is 15%. As a small island developing state with few natural resources, the economy depends on tourism and remittances. The country has a relatively good governance record for West Africa and is pursuing double taxation agreements. A 10% withholding tax applies to dividends and interest.
๐ธ๐ฑ Sierra Leone โ Sierra Leone Tax System
Sierra Leone has progressive income tax up to 35%. NRA (National Revenue Authority) administers tax collection. The country is recovering from the Ebola epidemic (2014โ16) and remains heavily aid-dependent. Mineral exports (iron ore, diamonds, titanium) are key. A 15% GST applies. The 2023 elections brought a new government focused on domestic revenue mobilization.
Cape Verde vs Sierra Leone: Key Tax Differences (2026)
๐ฐ Income Tax: ๐ธ๐ฑ Sierra Leone has a higher top income tax rate (0โ27.5% vs 0โ35%). ๐จ๐ป Cape Verde is more favourable for high earners.
๐ VAT/Sales Tax: Both countries have comparable consumption tax rates (15% vs 15%).
๐ข Corporate Tax: ๐จ๐ป Cape Verde offers a lower corporate rate (25% vs 30%), which can influence business location decisions.
๐ Capital Gains: ๐จ๐ป Cape Verde taxes investment gains at a lower rate (25% vs 30%), benefiting investors.