Cape Verde vs Japan
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.
๐ฏ๐ต Japan โ Prefectural & Municipal Inhabitant Tax
Japan's 47 prefectures levy inhabitant tax (ไฝๆฐ็จ) at a flat 10% on top of national income tax โ 4% prefectural + 6% municipal. A reconstruction special income tax of 2.1% of national tax applies through 2037. Property acquisition tax and fixed asset tax (1.4% of assessed value) are levied locally. Large cities impose additional taxes on large businesses.
Cape Verde vs Japan: Key Tax Differences (2026)
๐ฐ Income Tax: ๐ฏ๐ต Japan has a higher top income tax rate (0โ27.5% vs 5โ45%). ๐จ๐ป Cape Verde is more favourable for high earners.
๐ VAT/Sales Tax: Cape Verde has a higher consumption tax (15% vs 8โ10%).
๐ข Corporate Tax: ๐จ๐ป Cape Verde offers a lower corporate rate (25% vs 30.62%), which can influence business location decisions.
๐ Capital Gains: ๐ฏ๐ต Japan taxes investment gains at a lower rate (20.315% vs 25%), benefiting investors.