Cape Verde vs Afghanistan
Tax Rate Comparison
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๐ฐ Personal Income Tax Calculator
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๐จ๐ป Cape Verde โ Cape Verde Tax System
Cape Verde (Cabo Verde) has a progressive income tax system up to 27.5%. IVA (VAT) is 15%. As a small island developing state with few natural resources, the economy depends on tourism and remittances. The country has a relatively good governance record for West Africa and is pursuing double taxation agreements. A 10% withholding tax applies to dividends and interest.
๐ฆ๐ซ Afghanistan โ 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 โ 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.
Cape Verde vs Afghanistan: Key Tax Differences (2026)
๐ฐ Income Tax: ๐จ๐ป Cape Verde has a higher top income tax rate (0โ27.5% vs 0โ20%). ๐ฆ๐ซ Afghanistan is more favourable for high earners.
๐ VAT/Sales Tax: Cape Verde has a higher consumption tax (15% vs 10%).
๐ข Corporate Tax: ๐ฆ๐ซ Afghanistan offers a lower corporate rate (20% vs 25%), which can influence business location decisions.
๐ Capital Gains: ๐ฆ๐ซ Afghanistan taxes investment gains at a lower rate (0% vs 25%), benefiting investors.