Cape Verde – Binding Information

Decree Law No. 74/2020, of October 12^th  was published, establishing the fees for the provision of binding information by the National Directorate of State Revenue and establishing the procedures to obtain such rulings.

The legal institute of binding information was created in Cape Verde with the aim of (i) facilitating taxpayers’ compliance with tax obligations, given the growing complexity and diversity of tax legislation and (ii) achieving greater transparency in the relationship between the Tax Administration and the taxpayer.

This allows the taxpayer to know, in advance, the tax consequences of one or several projected operations, thus being able to make decisions with greater awareness of their impacts and effects, being consequently able to safely conduct their economic activity.

Binding information on the tax situation of taxpayers may be requested by taxpayers or other interested parties or representatives and will be addressed to the head of the service. These must be filed at the Tax Office of the tax area of the headquarters or domicile of the requesting person or entity.

Lawyers, auditors, certified public accountants or other entities qualified to exercise tax consultancy may also request binding rulings about the tax status of their clients.

The tax administration is required to answer and notify the applicant within seventy-five days, except in cases where the request is urgent. The information provided by the tax authorities is binding and may be revoked, with effect for the future, after one year from the date of its provision.