Investment incentives in Sao Tome Principe

Investment incentives in Sao Tome Principe

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The following are the tax incentives granted to investors in Sao Tome Principe;

  • 75% reduction in property transfer tax (SISA) payable for the acquisition or establishment of ownership rights for the investment project.50% reduction in corporate income tax for the first seven years of the project, including the first year.
  • Exemption from all customs fees on capital goods imported for the project’s implementation and execution.
  • Permission to amortize, over a period of three years, expenses incurred in the training and professional development of domestic personnel involved in the investment project.
  • Use of property owned by the State and suited to the project, for the project’s duration, so long as such use does not have harmful social or ecological impact.
  • Access to special lines of credit, to be determined by the competent authority, up to a maximum of fifty percent of the total investment amount (This last incentive exists only in theory, as STP has no funds to set up such credit lines.) The government may establish, by means of a contractual agreement, terms or rates exceeding those just mentioned, whenever the investment project is of exceptional interest to the national economy.
  • An exemption from corporate income tax on after-tax profits which, having been authorized for transfer abroad, are kept as company reserves.
  • The right to transfer after-tax profits abroad, up to an annual percentage of 15% of the foreign capital invested.
  • An exemption from taxes on bank transactions involving the entry of foreign capital for the project.

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