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
comprising more than 12 seats, including the driver, when imported by a public trans - porter with the respective permit that is in the process of replacing licensed vehicles, as contained in the General Legal Regime of Transport in Motor Vehicles ( Regime Jurídico Geral de Transportes em Veículos Motoriza- dos ); and • the importation of heavy passenger vehicles intended for school transport, duly equipped, comprising more than 23 seats, including the driver, when imported by an educational entity duly authorised by the competent min - istry, local authorities and public transporter, provided that those vehicles are duly licensed and authorised by the competent authorities. These imports are also subject to customs duties at the reduced rate of 5%. The above incentives shall not apply to vehicles aged more than six years, with the exception of the import of heavy passenger vehicles for col - lective transport of passengers when imported by a public transporter. For 2025, the import of heavy passenger vehi - cles, properly equipped, with more than 30 seats, including the driver’s seat, exclusively intended for the transportation of tourists and luggage is exempt from excise duties and VAT. This exemp - tion applies when carried out by public carriers duly licensed by the Directorate General of Road Transport. This incentive does not apply to vehi - cles aged more than six years. These imports are also subject to customs duties at the reduced rate of 5%. The import of light passenger vehicles, in new condition, exclusively intended for the operation of taxi services is exempt from excise duties and subject to a reduced import duty rate of 5% for
2025, and the import of four-by-four vehicles for adventure tourism is exempt from excise duties. Incentives Under the Young Start-Ups Programme Incentives for corporate finance Resident or non-resident entities with a PE in Cabo Verde that make cash capital contributions to companies eligible under the Young Start-Ups Programme, or to companies based in municipal territories where the average GDP per capita in the last three years is below the national aver- age, as well as to micro and small companies, can deduct part of these contributions up to 2% of the tax assessed in the previous tax year, pro - vided that: • there are no overdue wages; • their tax and contributory situation is regular - ised; • they are not taxed under indirect tax meth - ods; and • authorisation is granted to all their bank accounts. The deduction cap shall apply even if the com - pany makes capital contributions in more than one eligible company. This benefit is not cumula - tive with the tax benefit regarding the conven - tional remuneration of share capital. Other incentives The following incentives are applicable to enti - ties that carry out, directly and as their main activity, an economic activity eligible under the Young Start-Up Programme, approved by Reso - lution No 34/2017 of 25 April: • a CIT rate of 5%, applicable in the first five years of activity, starting 1 January 2019, except in the case of information, commu - nication and technology and research and
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