Tax
VAT at 15% with an international business centre and tourism-focused incentives
VAT is 15% and corporate tax is 22%, reduced substantially for qualifying International Business Centre activities. Cabo Verde uses the escudo pegged to the euro and is outside WAEMU, so it sets its own rates.
Key rules
- Jurisdiction — The Direção Nacional de Receitas do Estado assesses; appeals lie to the tax section of the Tribunal de Comarca.
- Deadline — Corporate return: 31 May following the tax year
- Deadline — VAT: monthly by the deadline in the VAT Code
Governing law
- Lei n° 21/VIII/2012 que aprova o Código do Imposto sobre o Valor Acrescentado
- Lei n° 82/VIII/2015 que aprova o Código do Imposto sobre o Rendimento das Pessoas Colectivas
- Lei n° 88/VIII/2015 sobre o Centro Internacional de Negócios
In practice
The escudo's fixed peg to the euro, backed by a Portuguese credit facility, gives Cabo Verde monetary stability without WAEMU membership, and its tax system is correspondingly independent. The International Business Centre's reduced rates for industrial, commercial and service exporters are the main incentive instrument, and tourism VAT treatment is the largest single policy question.