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
development enterprises, whose rate is 2.5%, regardless of the location of the head office or place of effective management; • an exemption from customs duties, excise duty and VAT on the importation of one vehicle for the transport of goods, compris - ing up to three seats in the cabin, including the driver, with a maximum age of five years, intended exclusively for the respective activ - ity; • an exemption from import duties on the importation of raw and subsidiary materi - als, materials and finished and semi-finished products intended for incorporation into products manufactured within the scope of industrial projects – the incentive shall apply if the entities are certified and registered at the Industrial Registry during the installation, expansion or remodelling phase; • financial incentives, support for capacity- building, and other institutional support pro - vided for in the legislation of micro and small companies; • an exemption from stamp duty on financ - ing agreements for the development of the respective activities; and • a reduction of 50% of the fees due on notarial acts and registrations due on the purchase and sale of real estate for the respective installation. Eligible companies whose places of effective management are located outside the munici - palities of Praia, São Vicente, Sal and Boa Vista shall benefit from a tax credit of 50% of the CIT assessed (not applicable to ICT and R&D activi - ties). Eligible companies shall benefit from the incentives provided for in Article 13 (exemp - tion from property tax), Article 15 (exemption from customs duties) and Article 332 (training, internships and scholarships) of the Tax Benefits
Code, and from the incentives for employers hir - ing young people. Eligible companies shall be subject to the pay - ment of autonomous taxation under the general
terms contained in the CIT Code. Incentives for Electric Mobility
The importation of electric vehicles, including two-wheel vehicles, is exempt from VAT, cus - toms duties and excise duties. The exemption from VAT and customs also applies to the impor - tation of new rechargeable batteries for electric vehicles, including their connectors, shields, connecting cables and meters, intended exclu - sively for charging. Parking fees for such electric vehicles are also exempt from VAT. Incentives for the Industrial Production of Inerts During 2025, the import of machines, equip - ment and their accessories and separate parts for the industrial production of inerts, as well as all types of materials intended for the industrial production of inerts, are exempt from customs duties and VAT, including the extraction of miner - als, applicable to projects located in the islands of Brava, Fogo, Maio, São Nicolau and Santo Antão. Tax Benefits Regarding the Recovery of Business and Insolvency There are CIT, PIT, stamp duty and property tax benefits for companies under recovery of busi - ness and insolvency procedures. Foreign Tax Credit Cabo Verdean tax law allows a foreign tax credit to mitigate the double taxation on for - eign income taxed in another jurisdiction. The
128 CHAMBERS.COM
Powered by FlippingBook