As a general rule, the tax year is the calendar year. A different tax year may be applied, subject to authorisation from the Ministry of Finance, in the case of non-resident companies with a PE in Cabo Verde and in other situations duly justified by economical reasons.
Taxpayers are required to file a tax return by 31 May of the year following the end of the tax year in case the tax year corresponds to the calendar year (last day of the fifth month following the end of the tax year in case the tax year is different from the tax year).
Payment of tax
Corporate taxpayers taxed under the standard regime must make three pre-payments on account of their income tax liability for the current tax year. The pre-payments are due by the end of March, July, and November and amount to 30%, 30%, and 20%, respectively, of the preceding tax year’s income tax liability.
Taxpayers are required to self-assess the tax due by 31 May of the year following the end of the tax year.
Micro and small-size companies are also subject to pre-payments, at a 4% tax rate levied on the annual turnover (sales and services), due by the last day of April, July, October, and January of the following year.
Tax audit process
There are no specific rules regarding the tax audit cycle in Cabo Verde.
Statute of limitations
The statute of limitations period in Cabo Verde is of five years.
Topics of focus for tax authorities
The main topics of focus for the Cabo Verde tax authorities include cost incurred on vehicles, communications, representation expenses, personnel costs, management fees, and payments to non-residents.
Taxpayers that meet at least one of the following criteria qualify as a 'Large Taxpayer' and shall be monitored by the Special Tax Office for Large Taxpayers:
- Turnover exceeding CVE 200 million, based on the annual income tax return.
- High level of inherent risk, based on a matrix developed by specific software.
- Taxes paid exceeding CVE 15 million, correspond to the sum of payments of CIT, WHT, VAT, and stamp duty.