Cape Verde is supported by the EY Portugal office.
Africa Tax Leader
Tel: +27 11 772 4905
National Tax Contact
Tel: +351 21 791 2249
Tel: +351 21 791 2179
Tel: + 351 21 154 2967
|Corporate Income Tax||25%||A|
|Capital Gains Tax||25%|
|Interest on shareholder loans: resident shareholders||20%||BD|
|Interest on shareholders loans: non-resident shareholders||20%||D|
|Interest on private and public company bonds: paid to residents||10%||BD|
|Interest on private and public company bonds paid to non-residents||10%||C|
|Interest on bank deposits: paid to residents||10%||B|
|Royalties paid to residents||20%||B|
|Royalties paid to non-residents||20%||C|
|Payments for services and commissions paid to residents||0%||N/A|
|Dividends paid to residents||10%||B|
|Dividends paid to non-residents||10%||C|
|Interest on bank deposits: paid to non-residents||20%||C|
|Payment for services and commissions paid to non-residents||20%||E|
|Rental income paid to residents||0%||N/A|
|Rental income paid to non-residents||20%||B|
|Branch Remittance Tax||0%||N/A|
A) Corporate income tax (Imposto sobre o Rendimento das Pessoas Colectivas, or IRPC) applies to resident companies and non-resident companies with permanent establishments (PEs) in Cape Verde. Micro- and small-sized companies can benefit from a 4% reduced rate, which applies to their turnover.
B) Income must be declared and is subject to the normal tax rates. Amounts withheld may be credited against the IRPC due.
C) These rates may be reduced or eliminated by tax treaties.
D) A withholding tax exemption is available regarding interest from shareholder loans and corporate bonds if the shareholder is a pure holding company (sociedade gestora de participações sociais, or SGPS) holding a stake of at least 10% for at least one year in the affiliated company.
E) The 20% rate applies to most services and commissions and may be eliminated under a tax treaty.
F) The amount deductible each year is capped at 50% of the taxable profit for the year.