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
Touristic Utility Status (Estatuto de Utilidade Turística) Cabo Verde may grant Touristic Utility Status to the following types of touristic projects: • installation, granted to new tourist resorts and facilities; • operation and exploitation, granted to existing tourist resorts and facilities; and • refurbishment, granted to existing tour - ist resorts and facilities in connection with improvements and expansions. Touristic Utility Status generally allows for the following tax incentives and benefits: • CIT credit of up to 30% of the eligible invest - ments made in tourism, touristic promotion activities and real estate tourism project investment; • an exemption from IUP on the acquisition of real estate used for the construction and installation of touristic projects, if granted by the municipality; • a reduced rate of 5% of customs duties on the importation of materials and equipment used in touristic projects; and • exemptions from stamp duty on the financing of tourism investments. Tax Incentives for Renewable Energies There is a regime for the promotion of independ - ent production and self-production of electricity based on renewable energy sources, which are considered to include water, wind, solar, bio - mass, biogas or industrial, agricultural or urban waste, oceans and tides, and geothermal. Under the regime, renewable energy producers may benefit from the following.
office and place of effective management are in Cabo Verde. CIT benefits Investments that are eligible for the regime of tax benefits for internationalisation may benefit from: • a reduction in their CIT rate of up to 50%, applicable until the term of the investment contract; and • an exemption from CIT on income obtained by qualified expatriate employees. In addition, a deduction for the creation of employment ranging between CVE26,000 and CVE35,000 for each new job created may apply. IUP benefits An exemption from IUP may be available on the acquisition of immovable property for the establishment or expansion of the activity of the investor. VAT and customs duty benefits Exemptions provided for in the VAT Code apply, as well as customs duties incentives as provided for in the general applicable legislation. Stamp duty and other benefits An exemption from stamp duty is available on the incorporation of companies or an increase of share capital of existing companies, and on financing transactions. An exemption from notary and registration fees is available on the incorporation and registration of companies.
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