Tax obligations – Cape Verde

Running a business in Boavista goes far beyond selling products and services.

This also includes compliance with legislation and therefore tax responsibility, a fundamental factor for the growth and sustainability of the company.

Tax obligations refer to the legal obligation to the tax authority. Such obligations are essential for the functioning of companies, as they avoid fines and lawsuits and contribute to a reputable image among customers, investors and partners.

Some taxpayer responsibilities:

1.⁠ ⁠Personal Income Tax (IRPS): is normally levied with withholding by the employer and the finances must be submitted within 15 days of the following month. The amount varies depending on the salary.

2.⁠ ⁠Value Added Tax (VAT): Tax levied on products and/or services according to business regulations.

3. ⁠ ⁠Corporate income tax (IRPC): the profit tax levied on organized audit firms (22%).

4.⁠ ⁠Tax on urban and territorial property (IUP): Real estate and land owners must pay the IUP annually. (1.5%)

5. ⁠ ⁠Social security contribution (INPS): Employers and employees must pay the INPS monthly. Payment dates are usually by the 15th of each month (8.5% employee + 16% employer).

Cape Verdean legislation is subject to constant changes and adaptations, making it challenging for companies to comply with tax and labor law obligations. Our team, composed of experienced professionals with knowledge in the different areas of management and accounting, is at your disposal to assist and support your business in all its stages.