Corporate Income Tax in Cape Verde

Who this applies to

Companies and other entities in the IRPC, resident or with a permanent establishment, on adjusted accounting profit; non-residents without one, by withholding. Micro and small companies in REMPE pay the Tributo Especial Unificado (TEU) instead.

Rates, bands and thresholds

Basis for 2026: the law is the State Budget 2026 (Lei 69/X/2025, in force 1 January 2026), the DNRE Calendario Fiscal 2026 and the base code as published. No consolidated code was found, and Lei 116/IX/2021 could not be opened, so a row resting on original code text carries that limit. The Amending Budget of 13 August 2026 changed no tax rate we could find.

Item	Amount	Tax year	Official URL
IRPC rate, organised accounts (art. 84(1))	20%	2026	https://boe.incv.cv/Bulletins/DownloadAct?id=89137
Rate to 31 Dec 2025	21%	2025	https://boe.incv.cv/Bulletins/Download/5549
TEU (REMPE art. 25)	4% of gross sales	2026	https://boe.incv.cv/Bulletins/Download/1891
TEU minimum, micro company turnover up to CVE 1,000,000	CVE 30,000 a year, pro rata in a start year	2026	same
TEU retention by organised-accounts payers (art. 25-A)	4% on account of the quarter	2026	https://boe.incv.cv/Bulletins/Download/5549
REMPE micro	Turnover up to CVE 5,000,000 and/or up to 5 workers	2026	https://www.mf.gov.cv/documents/54571/273413/Desdobr%C3%A1vel%20REMPE.pdf
REMPE small	Turnover CVE 5,000,000 to 10,000,000 and/or 6 to 10 workers	2026	same
REMPE exit	Over 30% above the art. 3(1)(c) turnover in a year: excluded next year	2026	https://boe.incv.cv/Bulletins/Download/6150
Qualified minimum tax (IMG)	15%, groups with EUR 750,000,000 revenue in 2 of the prior 4 years; detail in separate rules	2026	https://boe.incv.cv/Bulletins/DownloadAct?id=89137
Capital income withholding (art. 85)	20%, some items 10%; on account for organised accounts, otherwise final	2026	https://boe.incv.cv/Bulletins/Download/1957
Loss deduction cap per year (art. 59(2))	50% of taxable profit	2026	https://boe.incv.cv/Bulletins/Download/1957
Fractional payments (calendar)	30% of prior-year tax at end March, August and November	2026	https://www.mf.gov.cv/documents/54571/0/Calendario_Fiscal_2026_PEC_Vers%C3%A3o_Atualizado_110626.pdf/7f524ec2-1b35-2f33-8936-42e8b752516e?version=1.0&t=1781260657225
Category B and transparent regime payments (art. 96(3))	15% of prior-year taxable profit, in 3 equal parts	2026	https://boe.incv.cv/Bulletins/Download/4568
Start-up Jovem IRPC	5% for 5 years; 2.5% for ICT and R&D, on conditions	2026	https://boe.incv.cv/Bulletins/Download/4568
R&D credit	40% base, 50% incremental	2026	https://boe.incv.cv/Bulletins/DownloadAct?id=89137

The base

Start from accounting profit, adjust under the Code. Losses carry forward; the 2024 budget text removes the original 7-year wording from art. 59(1), and art. 59(2) kept its place. Health insurance premiums are deductible up to 20% of staff costs if they cover staff generally on one plan (art. 35(3)). Art. 68 limits financing costs, with exceptions for Banco de Cabo Verde supervised entities and approved projects. A group regime exists (arts 59-A to 59-C). Transfer prices must be at arm's length (art. 65).

The TEU replaces income tax, VAT, fire tax and the employer social contribution. Workers must still be registered with INPS.

Deadlines and filing

Who	Form	Date in 2026
Organised accounts, annual return	Modelo 1B	31 May
Accounting return	DAICF	31 July
Instalments	Portal	31 March, 31 August, 30 November
REMPE, quarterly	Modelo 107 with purchase and sales books; pay TEU	31 January, 30 April, 31 July, 31 October
REMPE micro exempt from TEU	Annual turnover return	31 January
SAF-T inventories	saft.efatura.cv	31 January
Investment credit evidence	Portal	31 July

How to file Modelo 1B

1. Log in to Porton di Nos Ilha.
2. Complete Modelo 1B with the DNRE instructions.
3. Submit by 31 May, working day or not (art. 101(1)).
4. Pay the balance. Then file the DAICF.

How to file Modelo 107

Generate the XML in software, validate against the XSD DNRE publishes, upload with both books, and pay at a tax office, bank, Home Banking, Vinti4 or online.

Penalties and interest

The Calendario Fiscal says late or missing returns and unpaid tax are infractions under the Regime Juridico das Infracoes Tributarias Nao Aduaneiras, with fines and late-payment interest. That regime could not be opened, so no amount is given here.

Cross-border points

Non-residents without a permanent establishment: final withholding at IRPS rates; if none applies, a compulsory return at the general rate (art. 86, which still prints 25% in the 2015 text; art. 84(1) is now 20%). Treaty relief: not read.

Two worked examples that recompute

Case 1: taxable profit CVE 5,000,000 at 20% is CVE 1,000,000. With instalments from prior-year tax of CVE 800,000, 3 x 240,000 is paid, leaving CVE 280,000.

name: IRPC and balance
inputs:
  profit: 5000000
  prior: 800000
steps:
  - tax: profit * 0.20
  - paid: prior * 0.30 * 3
  - balance: tax - paid
expected:
  tax: 1000000.00
  paid: 720000.00
  balance: 280000.00

Case 2, REMPE or organised accounts: sales CVE 4,000,000, profit CVE 900,000. TEU CVE 160,000; IRPC CVE 180,000. On income tax alone REMPE wins by CVE 20,000, before VAT and employer INPS, which REMPE also removes.

name: REMPE or organised accounts
inputs:
  sales: 4000000
  profit: 900000
steps:
  - teu: sales * 0.04
  - irpc: profit * 0.20
  - saving: irpc - teu
expected:
  teu: 160000.00
  irpc: 180000.00
  saving: 20000.00

Ask the client first

• Organised accounts or REMPE?
• Turnover and workers?
• Prior-year tax?
• Part of a group, or over EUR 750 million?
• Incentives claimed (Start-up Jovem, R&D, investment credit)?
• Payments to non-residents?

Sources

Source	URL	Read on
Lei 69/X/2025, State Budget 2026, BO I 133 sup. 1, 31 Dec 2025: arts 29, 30, 32, 84, 99, 100 and Anexo I read	https://boe.incv.cv/Bulletins/DownloadAct?id=89137	2026-11-01
Lei 1/XI/2026, Amending Budget 2026, BO I 90, 13 Aug 2026: searched for tax-rate changes, none found	https://boe.incv.cv/Bulletins/DownloadAct?id=112975	2026-11-01
Lei 82/VIII/2015, Codigo do IRPC, BO I 3, 8 Jan 2015 (original text): arts 59, 84 to 86, 96, annual return read	https://boe.incv.cv/Bulletins/Download/1957	2026-11-01
Lei 70/VIII/2014, REMPE, BO I 51, 26 Aug 2014: arts on the TEU, 25 and 26 read	https://boe.incv.cv/Bulletins/Download/1891	2026-11-01
Lei 16/X/2022, Budget 2023: arts 32 to 34 read	https://boe.incv.cv/Bulletins/Download/4568	2026-11-01
Lei 35/X/2023, Budget 2024: amendments to IRPC, REMPE and IVA read	https://boe.incv.cv/Bulletins/Download/5549	2026-11-01
Lei 45/X/2024, Budget 2025: arts 25 and 26 read	https://boe.incv.cv/Bulletins/Download/6150	2026-11-01
DNRE, Calendario Fiscal 2026, updated 11 Jun 2026: all months read	https://www.mf.gov.cv/documents/54571/0/Calendario_Fiscal_2026_PEC_Vers%C3%A3o_Atualizado_110626.pdf/7f524ec2-1b35-2f33-8936-42e8b752516e?version=1.0&t=1781260657225	2026-11-01
DNRE, REMPE leaflet, 2015: all read	https://www.mf.gov.cv/documents/54571/273413/Desdobr%C3%A1vel%20REMPE.pdf	2026-11-01
DNRE, forms and leaflets page: list read	https://www.mf.gov.cv/web/dnre/dire%C3%A7%C3%A3o-geral-das-contribui%C3%A7%C3%B5es-e-impostos	2026-11-01

Not yet confirmed: Lei 116/IX/2021 and every other amendment not listed in Sources; penalty amounts; interest rate. Fire surcharge (Taxa de Incendio) of 2% in Praia and Mindelo and the 20.40% effective rate: the tax exists in the budget, the rate was not found; the art. 85 list of 10% items; old rates of 10% on bonds, 5% on listed bonds and full dividend relief; 20% on royalties; 15% on services to non-residents; whether the third instalment is 30% (calendar) or 20% (2015 text; the calendar is followed); the calendar month August against July in the 2015 text; loss carry-forward period after the 2024 change; whether the TEU 2.8% and 3.2% codes in the DPR FAQ are current; the TEU reductions in art. 41; any later change to the 4% rate.