Cabo Verde 2023 State Budget introduces new tax incentives

 

Cabo Verde´s State Budget for 2023, which entered into force on January 1, includes new tax incentives, and keeps a wide range of existing benefits and tax incentives that aim to promote investment and employment.

A new tax incentive regime for research and business development is planned, which will be in force from 2023 to 2038. Persons liable for corporate income tax (IRPC) residing in the country who carry out, as their main activity, a commercial, agricultural, industrial, and service activity and non-residents with permanent establishments in that territory may deduct from the amount of the IRPC collection, and up to its concurrence, the amount corresponding to the expenses with research and development, in the part that has not been object of financial contribution from the State.

IRPC exemption is proposed for profits reinvested by technology-based companies authorized to operate in the Special Economic Zone for Technologies (hereinafter simply ZEET), which includes any company that carries out research and development activities (R&D ), internally or in external collaboration, with a view to creating new or better products or services and processes.

Cabo Verde wants to privatise nine public companies by 2026 

It is proposed exemption from taxation of income from corporate bonds and treasury bonds, with public placement and listed on the Stock Exchange, subscribed and already held by Cape Verdean emigrants.

Another addition is the exemption from income tax, for one year, for dependent workers and non-resident independent professionals who carry out a professional activity, remotely, to entities domiciled or headquartered outside the country, who have proof of employment. It is also proposed that these same workers may enjoy the incentives provided for in the regime of non-habitual residents, provided that they remain in the country for a period longer than one year.

Exemption from duties and other customs charges is foreseen for imports of equipment and accessories for the production of renewable energy, namely solar panels, wind generators and other energy production devices.

Brazil and Portugal economies quicken, other PSCs slow – IMF

The 2023 budget also includes exemption from excise tax is proposed on the import of all-terrain vehicles (4×4) intended for adventure tourism.

Another change in the national minimum wage and attribution of social pension to the elderly: there is an increase in the minimum wage of 13,000$00 (thirteen thousand escudos) to 14000$00 (fourteen thousand escudos).

 

 

Other articles

Cabo Verde

“Displeased” David Chow moves to close Cabo Verde consulate in Macao

Angola

Mozambique and Cabo Verde to lead Portuguese-speaking countries GDP growth in 2022