Personal Income Tax in Guinea-Bissau
Guinea-Bissau operates a progressive personal income tax (IRPS) system for resident individuals. This guide explains how personal income is taxed, what deductions are available, and how to comply with filing requirements.
Tax Residency
An individual is considered a tax resident of Guinea-Bissau if they meet any of the following criteria:
- Spend more than 183 days in Guinea-Bissau in a calendar year
- Have their primary place of abode in Guinea-Bissau
- Have their center of vital interests (economic and personal) in Guinea-Bissau
Resident individuals are taxed on their worldwide income. Non-residents are taxed only on Guinea-Bissau-source income.
Personal Income Tax Rates (2026)
Guinea-Bissau uses a progressive tax rate structure for employment and business income. The rates are applied to annual taxable income:
| Annual Taxable Income (XOF) | Tax Rate |
|---|---|
| 0 – 300,000 | 0% |
| 300,001 – 600,000 | 10% |
| 600,001 – 1,200,000 | 15% |
| Above 1,200,000 | 20% |
Monthly equivalent: 0% up to 25,000 XOF, 10% up to 50,000 XOF, 15% up to 100,000 XOF, 20% above 100,000 XOF.
Deductions and Allowances
Standard Deductions
- Social Security Contributions: Employee contributions to INPS (4%) are fully deductible
- Pension Contributions: Up to 10% of employment income for approved private pension plans
- Health Insurance: Premiums for approved health insurance plans
- Charitable Donations: To approved organizations, up to 5% of taxable income
Family Allowances
- Married Couple: Joint filing available; income splitting not permitted, but a spousal allowance may apply
- Child Allowance: Allowance per dependent child per month (up to 3 children)
Employment Income
Employment income includes salaries, wages, bonuses, commissions, and benefits in kind. Employers are required to withhold PAYE (Pay As You Earn) tax from employee salaries and remit it to the tax authorities monthly by the 15th of the following month.
Taxable Benefits in Kind
- Company car: 10% of vehicle value per year
- Housing: 20% of gross salary (if provided by employer)
- Interest-free loans: Imputed interest at 3% per annum
Self-Employment and Business Income
Self-employed individuals and sole proprietors are taxed on their net business income at progressive IRPS rates. Expenses directly related to the business activity are deductible.
Filing Requirements
- Annual Tax Return: Due by April 30 of the following year
- PAYE Returns: Monthly, by the 15th of the following month
- Estimated Tax Payments: For self-employed individuals, quarterly installments
Penalties
- Late filing: 10% of tax due, plus 1% per month of delay
- Late payment: 0.5% per month of delay
- Understatement: 25% of understated tax
- Fraud: Up to 100% of tax evaded, plus criminal prosecution