Employer Tax Contributions

Tax Type	Rate	Base
Social Security (Employer)	8%	Gross salary
Personal Income Tax	0% - 25%	Employee income
Corporate Income Tax	25%	Taxable profits
Value Added Tax (VAT)	15%	Goods/Services

Filing & Compliance

• Monthly remittances for withheld Personal Income Tax (IRPS) and social security contributions are generally due by the 10th or 15th of the following month.
• Employers must file annual declarations summarizing total remuneration and withheld taxes/contributions, typically due by the end of March.
• Corporate Income Tax (CIT) is generally due monthly by the 15th day following the taxable transaction, with annual returns typically due at the end of July.

Employee tax deductions in Sao Tome and Principe primarily consist of social security contributions, with no specific payroll tax on wages and salaries.

Social Security Contributions

Social security contributions are deducted from employee wages to fund benefits like pensions and healthcare. While the exact percentages are not available in the provided sources, these contributions are mandatory for all employees.

Income Tax (Imposto sobre o Rendimento das Pessoas Singulares - IRPS)

Employees are subject to income tax (IRPS), but this is a separate tax from payroll deductions and is usually filed annually. The 2024 budget introduced a special tax on individual income (IERS) at a rate of 20% on monthly income exceeding STD 50,000.

Other Deductions

Other potential deductions might include those for union dues or specific employee benefits programs. Information regarding these deductions must be clarified with local authorities or payroll specialists.

Employer Responsibilities

Employers are responsible for deducting social security contributions and remitting them to the appropriate authorities. They must also withhold income tax (IRPS) based on the employee's income and tax bracket. It's essential for employers to maintain accurate payroll records and comply with all tax regulations and deadlines.

Tax Year and Deadlines

Sao Tome and Principe's tax year typically aligns with the calendar year. Deadlines for filing and remitting taxes vary depending on the type of tax and the specific regulations. It's crucial for employers to consult official sources or local experts for the most up-to-date information on deadlines. As this information is time-sensitive, consulting official resources is recommended for up-to-date details.

Corporate Taxes

While not directly related to employee deductions, the corporate income tax rate in Sao Tome and Principe is generally 10%. However, specific sectors (tourism, education, health, new technologies, and exports) benefit from accelerated depreciation and amortization. Tax deductions are also available for investments in specialized equipment and employee training. The petroleum sector operates under separate tax regulations, with a 30% income tax rate.

This information is current as of February 5, 2025, and may be subject to change due to legal and regulatory updates. Always consult the most current official sources or local tax advisors for confirmation.