Sao Tome and Principe vs Afghanistan
Tax Rate Comparison
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π° Personal Income Tax Calculator
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πΈπΉ Sao Tome and Principe β Sao Tome & Principe Tax System
Sao Tome and Principe is a small island nation in the Gulf of Guinea with progressive income tax up to 25%. IVA (VAT) is 15%. The economy has long been dominated by cocoa exports and foreign aid. Offshore oil potential (Joint Development Zone with Nigeria) has not yet materialized in significant production. The country joined the EITI (Extractive Industries Transparency Initiative).
π¦π« Afghanistan β Afghanistan Tax System
Afghanistan's formal tax system has largely collapsed since the Taliban takeover in August 2021. The Taliban government (Islamic Emirate of Afghanistan) has implemented its own revenue collection based on Islamic principles β zakat (2.5% wealth tax on assets held for a year), ushr (10% agricultural tithe), and customs duties. International sanctions have frozen most government assets. USAID and World Bank tax programs ended. The formal income tax system from the previous government nominally exists but is not enforced.
Sao Tome and Principe vs Afghanistan: Key Tax Differences (2026)
π° Income Tax: πΈπΉ Sao Tome and Principe has a higher top income tax rate (0β25% vs 0β20%). π¦π« Afghanistan is more favourable for high earners.
π VAT/Sales Tax: Sao Tome and Principe has a higher consumption tax (15% vs 10%).
π’ Corporate Tax: π¦π« Afghanistan offers a lower corporate rate (20% vs 25%), which can influence business location decisions.
π Capital Gains: π¦π« Afghanistan taxes investment gains at a lower rate (0% vs 25%), benefiting investors.