CABO VERDE LAW AND PRACTICE Contributed by: Nelson Raposo Bernardo, Joana Andrade Correia, Manuel Esteves de Albuquerque and Mafalda Contumélias Batista, Raposo Bernardo & Associado s
submitted for analysis and approval to the com - petent authorities prior to the entry into force of the Tax Benefits Code continue to be regulated under the legislation in force at the date of their
• represent an investment equal to or higher than CVE1.5 billion (EUR13,603,591); • contribute, in net terms, to the improvement of the balance of payments; • use technology, production and commerciali - sation processes that minimise environmental impacts or promote environmental sustain - ability; and • have a recognised productive social effect, particularly in the creation of at least five qualified jobs (those that require specialised technical training, either professional or of higher education, including management positions). Investment projects with DMP status are granted the following benefits: • a reduced customs duty rate of 5% on the importation of materials, goods and equip - ment mentioned in Article 15 of the Tax Benefit Code; • customs duty exemption on the importation of raw materials, consumables, finished and semi-finished materials and other products to be incorporated in products manufactured by the company – in the case of industrial invest - ment (ie, projects of companies registered in the Cadastro Industrial), the exemption is also applicable to packaging and wrapping materials used in products manufactured by the company; • CIT tax credit of 30% of the eligible invest - ments effectively made (capped at 50% of the CIT assessed); • stamp tax exemption on the borrowing of funds for the investment; • property tax (IUP) exemption on the acquisi - tion of real estate aimed exclusively at the installation of the investment project; and • other non-tax incentives established in spe - cific legal diplomas.
respective submissions. Contractual Tax Benefits
There are exceptional incentives – regarding customs duties, CIT, PIT, property tax and stamp duty – for investments that fulfil all of the follow - ing conditions. • The promoter of the investment possesses technical and managerial capacities. • The invested amount exceeds CVE3 billion (EUR27,207,183). The relevant amount is CVE1.5 billion (EUR13,603,591) for invest - ments located in a municipal area where the average GDP per capita is lower than the national average (with reference to the last three years). • They create, directly, at least 20 qualified jobs (ten in the case of investments located in a municipal area where the average GDP per capita is lower than the national average, with reference to the last three years). A qualified job requires professional or higher education, or specialised technical training, certified by a national or foreign entity, including manage - ment positions. The concession of contractual tax benefits is subject to approval by the Council of Ministers upon agreement. Differentiated Merit Projects (DMP) DMP status was established by Law 80/IX/2020, of 26 March, and is granted to investments that cumulatively meet the following requirements, among others:
122 CHAMBERS.COM
Powered by FlippingBook