Cape Verde flag Cape Verde:

Presentation of Cape Verde : Taxation

Value added Tax (VAT) - Imposto sobre o valor acrescentado (IVA)
15% (standard rate).
Exempt transactions include certain hospital and medical care services, the provision of children's or young people's education, school or university education, the supply of services and goods by non-profit-making organisations, the supply of copyright and art objects by the original creators or their heirs, garbage removal services, burial and cremation supplies, banking, financial, insurance, and reinsurance transactions, immovable property transactions, some basic foodstuff and pharmaceutical products, goods used in agriculture, stockbreeding, forestry, and fisheries, etc.

Zero-rated items include: import of goods whose supply qualifies for exemption; services in connection with the import of goods where the value of such services is included in the taxable amount; import of gold by the central bank; import into ports by sea fishing undertakings of their catches, unprocessed or after undergoing preservation for marketing but before being supplied; import of goods under diplomatic and consular arrangements that qualify for exemption from customs duties; import of goods for the fuelling and provisioning of sea-going vessels and aircraft; supply, modification, repair, maintenance, chartering, and hiring of aircraft used by airlines operating both on domestic and international routes, and the supply, hiring, repair, and maintenance of equipment incorporated or used therein; the supply of goods for the fuelling and provisioning of such aircraft; services meeting the direct needs of such aircraft or their cargoes; etc.

Company Tax :
Corporate tax: 22%
Additionnal Surcharge: A municipal surcharge called "Taxa de Incêndio" is levied at a rate of 2% on the tax due in the municipalities of Praia (Island of Santiago) and Mindelo (Island of São Vicente)
Single special tax (SST) for micro and small-sized companies: 4% on the gross amount of sales.
Payable quarterly, replaces corporate income tax, VAT, fire brigade surtax and social security contributions
Withholding Taxes :
Dividends: 0%, Interests: 20%, Royalties: 20%.
Social Security Contributions Paid By Employers :
16%
Other Domestic Resources
Finance Ministry
Overview of Cabo Verde's tax measures in response to Covid-19
Consult Doing Business Website, to obtain a summary of the taxes and mandatory contributions.
 

Country Comparison For Corporate Taxation

  Cape Verde Sub-Saharan Africa United States Germany
Number of Payments of Taxes per Year 30.0 36.6 10.6 9.0
Time Taken For Administrative Formalities (Hours) 180.0 284.8 175.0 218.0
Total Share of Taxes (% of Profit) 37.5 47.3 36.6 48.8

Source: Doing Business - Latest available data.

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Latest Update: May 2022