Sao Tome and Principe vs Somalia
Tax Rate Comparison
Enter your income below for a personal tax estimate, then scroll down for full rate breakdowns.
π° Personal Income Tax Calculator
Enter your income to see your estimated annual tax liability in each country β side by side.
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).
πΈπ΄ Somalia β Somalia Tax System
Somalia's formal tax system is extremely limited. The Federal Government has been rebuilding fiscal capacity since 2012 after decades of civil war. Tax revenue is less than 2% of GDP. Customs duties at ports (especially Mogadishu) are the main revenue source. Al-Shabaab controls much of the south and runs a parallel extortion-based taxation system. Income tax legislation exists on paper but enforcement is minimal.
Sao Tome and Principe vs Somalia: Key Tax Differences (2026)
π° Income Tax: πΈπ΄ Somalia has a higher top income tax rate (0β25% vs 0β30%). πΈπΉ Sao Tome and Principe 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: πΈπΉ Sao Tome and Principe offers a lower corporate rate (25% vs 30%), which can influence business location decisions.
π Capital Gains: πΈπ΄ Somalia taxes investment gains at a lower rate (0% vs 25%), benefiting investors.