The Sao Tome and Principe Tax Directorate has issued a Binding Information dated 25 September 2020 to clarify that lease agreements are not subject to the consumption tax. According to the Binding Information, the lawmaker had no intention to impose the consumption tax on leases because Article 1 of the General Tax Code, which levies the consumption Tax on the provision of services, refers only to tangible movable property and omits immovable property in defining services. Specifically, Article 1 provides that all operations arising from the exercise of economic activity, carried out for consideration, which do not involve the transfer...