Cape Verde is an island nation located off the coast of West Africa. It has a population of approximately 545,000 people and a GDP of $2.3 billion. The economy of Cape Verde is largely based on tourism, fishing, and remittances from its diaspora. The country has seen steady economic growth in recent years, with a GDP growth rate of 4.2% in 2019. The unemployment rate in Cape Verde is relatively low, at 8.2%, and the inflation rate is also low, at 1.7%. The country has a relatively high Human Development Index (HDI) of 0.717, which is higher than the average for Sub-Saharan Africa. The government of Cape Verde has implemented a number of reforms to improve the economy, including the introduction of a new tax system and the privatization of state-owned enterprises. These reforms have helped to create a more stable and prosperous economy.
Cape Verde is an island country located off the coast of West Africa with a tax system regulated by the General Tax Code. The tax system is divided into two main categories: personal income tax and corporate income tax.
Personal income tax is levied on all individuals who earn income in Cape Verde, whether they are residents or non-residents. The tax rate is progressive, ranging from 10% to 35%, depending on the income level. The first CVE 350,000 of annual income is exempt from taxation, and there are various deductions and credits available to reduce the tax liability.
Corporate income tax is levied on all businesses operating in Cape Verde. The standard corporate tax rate is 25% on the net taxable income. However, there are various tax incentives available for certain industries and activities, such as those related to job creation and investment in certain regions of the country.
In addition to federal taxes, there are also other taxes levied on businesses operating in Cape Verde, such as the value-added tax (VAT), which is currently 15%, and various excise taxes on certain products.
The tax year in Cape Verde runs from January 1st to December 31st. The deadline for filing personal income tax returns and paying any outstanding tax is usually April 30th of the following year, while the deadline for filing corporate tax returns and paying any outstanding tax is generally May 31st of the following year.
Payments can be made online or in person at designated banks. Penalties for late payment or non-payment of taxes can range from fines to imprisonment, depending on the severity of the offense. Additionally, interest may be charged on any outstanding tax liability.
Overall, taxation in Cape Verde is relatively straightforward, with a moderate tax burden compared to other countries in the region. It is important for taxpayers to consult with local tax advisors or government authorities to ensure compliance with the relevant tax regulations.
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