- Updated
- October 2025
- Sections
- 15
- Questions
- 39
Key Facts
Core Framework
Article 65 of the Corporate Income Tax Code Article 3 Ministerial Order (Portaria) n.º 75/2015, of the 31st of December
Article 3 Ministerial Order (Portaria) n.º 75/2015, of the 31st of December
The OECD Transfer Pricing Guidelines are referred in the Cabo Verde’s legislation as a source of guidance in the application of the arm’s length principle. The preamble of the Ministerial Order (Portaria) n.º 75/2015, of the 31st of December, refers that the OECD Transfer Pricing Guidelines should be taken in consideration in the application of the transfer pricing legal framework and of the arm’s length principle, given the complexity of the issue, and the need to avoid double taxation and litigation.
Article 5 and 6 Ministerial Order (Portaria) n.º 75/2015, of the 31st of December
Article 5 of the Ministerial Order n.º 75/2015 identifies the relevant steps to perform a comparability analysis, in alignment with Chapter III of the TPG, and Article 6 of the Ministerial Order n.º 75/2015 identifies the comparability factors to consider in the analysis of controlled transactions under the arm’s length principle. The OCDE TPG are a supplementary source of guidance in the application of the arm’s length principle in any comparability aspects not specifically covered by the domestic legislation. Regarding aggregation or individual testing of transactions, individual testing is preferred. Aggregation is allowed only if certain conditions are met.
Article 5 paragraph 5 Ministerial Order (Portaria) n.º 75/2015, of the 31st of December
The domestic legislation allows the use of an arm’s length range and of statistical measures for determining an arm’s length remuneration, provided that the analytical process underlying the determination of the range or the statistical measure is in alignment with the arm’s length principle.
Documentation
TPD (LF): Articles 14, 15 and 16 Ministerial Order (Portaria) n.º 75/2015, of the 31st of December CbCR: Articles 105 and 106 of the Corporate Income Tax Code
TPD (LF): Articles 14, 15 and 16 Ministerial Order (Portaria) n.º 75/2015, of the 31st of December CbCR: Articles 105 and 106 of the Corporate Income Tax Code
TPD (LF): Articles 14, 15 and 16 Ministerial Order (Portaria) n.º 75/2015, of the 31st of December CbCR: Articles 105 and 106 of the Corporate Income Tax Code
Article 98-C and article 99 of the Cabo Verdean Taxation Infringements General Law Article 96 of the Cabo Verdean Taxation Infringements General Law
Failure to present the transfer pricing documentation is punished with a penalty of CVE 100 000 (approx. EUR 905) to CVE 2 500 000 (approx. EUR 22 700), if not regarded as tax fraud. In case of fraud, penalties are higher. Any inaccuracies in the information provided in the TP documentation, in the TP returns or in CbCR are punished with a penalty of CVE 70 000 (approx. EUR 630) to CVE 750 000 (approx. EUR 6 800). Failure to present the CbCR is punished with a penalty of CVE 50 000 (approx. EUR 455) to CVE 1 500 000 (approx. EUR 13 600).
TP Methods
- CUP
- Resale Price
- Cost Plus
- TNMM
- Profit Split
- Other
Selection: Most appropriate method
Dispute Resolution
Article 14 paragraph 18 Ministerial Order (Portaria) n.º 75/2015, of the 31st of December Article 65 paragraph 6 of the Corporate Income Tax Code
In Cabo Verde, corresponding adjustments cannot be granted unilaterally. They are only available under a Double Taxation Agreement through the Mutual Agreement Procedure (MAP). In the absence of a treaty, no corresponding adjustment can be made. Binding rulings: The General Tax Code provides the taxpayer the possibility of obtaining a binding ruling. The biding ruling is limited to a certain time period, which is determined on a case-by-case basis by the tax authorities. The ruling is subject to the payment of a fee. Cabo Verde does not currently provide for APAs—that is, there is no explicit legal or regulatory framework allowing taxpayers to enter APAs with the tax authorities regarding transfer pricing arrangements.
Article 14 paragraph 18 Ministerial Order (Portaria) n.º 75/2015, of the 31st of December Article 65 paragraph 6 of the Corporate Income Tax Code
In Cabo Verde, corresponding adjustments cannot be granted unilaterally. They are only available under a Double Taxation Agreement through the Mutual Agreement Procedure (MAP). In the absence of a treaty, no corresponding adjustment can be made. Binding rulings: The General Tax Code provides the taxpayer the possibility of obtaining a binding ruling. The biding ruling is limited to a certain time period, which is determined on a case-by-case basis by the tax authorities. The ruling is subject to the payment of a fee. Cabo Verde does not currently provide for APAs—that is, there is no explicit legal or regulatory framework allowing taxpayers to enter APAs with the tax authorities regarding transfer pricing arrangements.
Simplifications
Currently, the Simplified and Streamlined Approach (Amount B) is under consideration and being evaluated in Cabo Verde.
Special Topics
Controlled transactions involving intangibles follow the general transfer pricing rules prescribed in the Cabo Verdean legislation, in alignment with Chapter VI of the TPG. The OCDE TPG are a supplementary source of guidance in the application of the arm’s length principle to controlled transactions involving intangibles, in aspects not specifically covered by the domestic legislation.
Cabo Verde has not yet expressly adopted the HTVI approach as defined in Chapter VI of the OECD Transfer Pricing Guidelines. However, the Cabo Verdean legislation contains a reference to the OECD Transfer Pricing Guidelines as a source of supplementary guidance in the application of the arm’s length principle, particularly in what concerns complex technical issues or in case of omissions in the domestic transfer pricing regime. In consequence, and although it is not expressly adopted in the national legislation, there is also no impediment to the application of the HTVI approach, as defined in Chapter VI of the OECD Transfer Pricing Guidelines, within the statute of limitations period (five years, starting from the beginning of the fiscal year following the year in which the tax issue was identified or raised).
Article 13 Ministerial Order (Portaria) n.º 75/2015, of the 31st of December
Article 13 of the Ministerial Order n.º 75/2015, gives guidance on the application of the Arm’s Length Principle to intra-group services transactions, in alignment with the guidance of the OECD TPG.
Article 13 Ministerial Order (Portaria) n.º 75/2015, of the 31st of December
Although domestic legislation does not contain specific guidance on financial transactions between related parties, both Article 65 of the Corporate Income Tax Code (CITC) and Preamble of the Ministerial Order (Portaria) n.º 75/2015, make clear that the arm’s length principle is applicable to those transactions. Additionally, the OCDE TPG are a supplementary source of guidance in the application of the arm’s length principle to controlled transactions in aspects not specifically covered by the domestic legislation.
Full OECD Questionnaire
Legal ReferenceArticle 65 of the Corporate Income Tax Code Article 3 Ministerial Order (Portaria) n.º 75/2015, of the 31st of December
Legal ReferenceArticle 3 Ministerial Order (Portaria) n.º 75/2015, of the 31st of December
The OECD Transfer Pricing Guidelines are referred in the Cabo Verde’s legislation as a source of guidance in the application of the arm’s length principle. The preamble of the Ministerial Order (Portaria) n.º 75/2015, of the 31st of December, refers that the OECD Transfer Pricing Guidelines should be taken in consideration in the application of the transfer pricing legal framework and of the arm’s length principle, given the complexity of the issue, and the need to avoid double taxation and litigation.
Legal ReferenceArticle 66 of the Corporate Income Tax Code
There shall be deemed to be a special relationship between two entities where one of them has the power to exert, directly or indirectly, a significant impact on the management decisions of the other; this shall be deemed to occur, namely, between: a) An entity and the owners of its equity, or the spouses, ascendants or descendants thereof, holding, directly or indirectly, a participation not lower than 20 per cent of the equity or voting rights; b) Entities in which the same equity owners, respective spouses, ascendants or descendants hold, directly or indirectly, a participation not lower than 20 per cent of the equity or voting rights; c) Entities whose legal relationship enables, by its terms and conditions, one to influence the management decisions of the other, based on facts or circumstances unrelated to the commercial or professional relationship itself, d) Other entities designated by the tax authorities. The arm’s length principle is also applicable to any transaction between: a) a Cabo Verdean company and its permanent establishments abroad, or between these permanent establishments; b) A non-resident entity and its permanent establishment in Cabo Verde, or between these and other permanent establishments of that non-resident entity.
Legal ReferenceArticle 5 Ministerial Order (Portaria) n.º 75/2015, of the 31st of December
Taxpayers should use the most appropriate method depending on the nature of the transaction and the availability of reliable data. In addition to the recognized OECD transfer pricing methods, Cabo Verde’s domestic legislation also provides for the use of ‘other methods’, which is consistent with paragraph 2.9 of the OECD Transfer Pricing Guidelines. This allows for flexibility in cases where none of the five standard methods is considered appropriate, ensuring alignment with the arm’s length principle.
- CUP (provided)
- Resale Price (provided)
- Cost Plus (provided)
- TNMM (provided)
- Profit Split (provided)
- Other (provided)
Legal ReferenceArticle 5 paragraph 2 Ministerial Order (Portaria) n.º 75/2015, of the 31st of December
According to Article 6 of Ministerial Order (Portaria) n.º 75/2015, of the 31st of December, the taxpayer shall adopt the most appropriate method, which is defined as the method that is likely to provide the highest degree of estimation of the terms and conditions that independent entities would agree upon, accept or use at arm’s length.
- Hierarchy of methods (not selected)
- Most appropriate method (selected)
- Other (if so, please explain) (not selected)
As the domestic legislation does not contain specific guidance on commodity transactions, paragraphs 2.18-2.22 of the TPG would be a source of guidance in the application of the arm’s length principle in these cases.
Legal ReferenceArticle 5 and 6 Ministerial Order (Portaria) n.º 75/2015, of the 31st of December
Article 5 of the Ministerial Order n.º 75/2015 identifies the relevant steps to perform a comparability analysis, in alignment with Chapter III of the TPG, and Article 6 of the Ministerial Order n.º 75/2015 identifies the comparability factors to consider in the analysis of controlled transactions under the arm’s length principle. The OCDE TPG are a supplementary source of guidance in the application of the arm’s length principle in any comparability aspects not specifically covered by the domestic legislation. Regarding aggregation or individual testing of transactions, individual testing is preferred. Aggregation is allowed only if certain conditions are met.
Legal ReferenceArticle 5 paragraph 5 Ministerial Order (Portaria) n.º 75/2015, of the 31st of December
The domestic legislation allows the use of an arm’s length range and of statistical measures for determining an arm’s length remuneration, provided that the analytical process underlying the determination of the range or the statistical measure is in alignment with the arm’s length principle.
Legal ReferenceArticle 5 Ministerial Order (Portaria) n.º 75/2015, of the 31st of December
When applying a transfer pricing method, and if the terms and conditions of the tested transactions or companies are not fully comparable in any of the relevant aspects required for an arm’s length test, comparability adjustments must be performed to eliminate the effect of the existing relevant differences.
Controlled transactions involving intangibles follow the general transfer pricing rules prescribed in the Cabo Verdean legislation, in alignment with Chapter VI of the TPG. The OCDE TPG are a supplementary source of guidance in the application of the arm’s length principle to controlled transactions involving intangibles, in aspects not specifically covered by the domestic legislation.
Cabo Verde has not yet expressly adopted the HTVI approach as defined in Chapter VI of the OECD Transfer Pricing Guidelines. However, the Cabo Verdean legislation contains a reference to the OECD Transfer Pricing Guidelines as a source of supplementary guidance in the application of the arm’s length principle, particularly in what concerns complex technical issues or in case of omissions in the domestic transfer pricing regime. In consequence, and although it is not expressly adopted in the national legislation, there is also no impediment to the application of the HTVI approach, as defined in Chapter VI of the OECD Transfer Pricing Guidelines, within the statute of limitations period (five years, starting from the beginning of the fiscal year following the year in which the tax issue was identified or raised).
Legal ReferenceArticle 13 Ministerial Order (Portaria) n.º 75/2015, of the 31st of December
Article 13 of the Ministerial Order n.º 75/2015, gives guidance on the application of the Arm’s Length Principle to intra-group services transactions, in alignment with the guidance of the OECD TPG.
Legal ReferenceArticle 13 Ministerial Order (Portaria) n.º 75/2015, of the 31st of December
Although domestic legislation does not contain specific guidance on financial transactions between related parties, both Article 65 of the Corporate Income Tax Code (CITC) and Preamble of the Ministerial Order (Portaria) n.º 75/2015, make clear that the arm’s length principle is applicable to those transactions. Additionally, the OCDE TPG are a supplementary source of guidance in the application of the arm’s length principle to controlled transactions in aspects not specifically covered by the domestic legislation.
Legal ReferenceArticles 68 of the Corporate Income Tax Code
Article 68 of the Corporate Income Tax Code limits interest deductions for the purposes of the determination of a company’s taxable income, following the guidance in BEPS Action 4.
Legal ReferenceArticle 17 Ministerial Order (Portaria) n.º 75/2015, of the 31st of December
Article 17 of the Ministerial Order n.º 75/2015 gives generic guidance on the application of the Arm’s Length Principle to cost contribution agreements, in alignment with the guidance of the OECD TPG.
Legal ReferenceTPD (LF): Articles 14, 15 and 16 Ministerial Order (Portaria) n.º 75/2015, of the 31st of December CbCR: Articles 105 and 106 of the Corporate Income Tax Code
- Master file consistent with Annex I to Chapter V of the TPG (not selected)
- Local file consistent with Annex II to Chapter V of the TPG (selected)
- Country-by-country report consistent with Annex III to Chapter V of the TPG (selected)
- Specific transfer pricing returns (separate or annexed to the tax return) (selected)
- Other (specify): (not selected)
Legal ReferenceTP Documentation: Article 65 paragraph 4 and Article 102 of the Corporate Income Tax Code TP Return: Article 66 paragraph 3 and 104 of the Corporate Income Tax Code CbCR: Article 105 of the Corporate Income Tax Code
Transfer pricing documentation must be prepared until 31 July of the year following the end of the tax year in case the tax year corresponds to the calendar year (last day of the seventh month following the end of the tax year in case the tax year is different from the tax year). The documentation should be prepared in Portuguese. Transfer pricing documentation is submitted upon request. The same deadline and conditions apply to the filing of the TP return. CbCR must be submitted until the end of the 12th month after the end of the fiscal year to which it refers. Each constituent entity of a MNE group must identify by filing the adequate form, the reporting entity of the MNE group, until the end of the 5th month after the end of the fiscal year to which the inherent CbCR refers. CbCR should be sent in Portuguese, however the tax administration may also accept submissions in English to facilitate the exchange of information on CbCR. For a MNE with multiple entities in Cabo Verde, it is required to have stand-alone transfer pricing reports for each entity. Taxpayers must maintain contemporaneous information and documentation regarding the TP policy adopted in the determination of transfer prices on an annual basis.
Legal ReferenceArticle 98-C and article 99 of the Cabo Verdean Taxation Infringements General Law Article 96 of the Cabo Verdean Taxation Infringements General Law
Failure to present the transfer pricing documentation is punished with a penalty of CVE 100 000 (approx. EUR 905) to CVE 2 500 000 (approx. EUR 22 700), if not regarded as tax fraud. In case of fraud, penalties are higher. Any inaccuracies in the information provided in the TP documentation, in the TP returns or in CbCR are punished with a penalty of CVE 70 000 (approx. EUR 630) to CVE 750 000 (approx. EUR 6 800). Failure to present the CbCR is punished with a penalty of CVE 50 000 (approx. EUR 455) to CVE 1 500 000 (approx. EUR 13 600).
Legal ReferenceArticle 14 paragraph 2-A Ministerial Order (Portaria) n.º 75/2015, of the 31st of December Large Taxpayer definition on Article 2 paragraph 1-A Ministerial Order (Portaria) n.º 24/2023, of the 13th of May 2023 which amends Ministerial Order (Portaria) n.º 55/2013, of the 14h of November 2013
The obligation to prepare the transfer pricing documentation generally does not apply to any taxable person whose net sales and other income in the previous fiscal year are less than CVE 300 million or EUR 2.7 million and entities with a total tax paid not exceeding CVE 15 million or EUR 136 000 (and who is not classified as a Large Taxpayer). This threshold is not applicable to the transfer pricing return, that has no threshold, or to CbCR, that replicates the guidance of BEPS Action 13.
Legal ReferenceArticle 14 paragraph 18 Ministerial Order (Portaria) n.º 75/2015, of the 31st of December Article 65 paragraph 6 of the Corporate Income Tax Code
In Cabo Verde, corresponding adjustments cannot be granted unilaterally. They are only available under a Double Taxation Agreement through the Mutual Agreement Procedure (MAP). In the absence of a treaty, no corresponding adjustment can be made. Binding rulings: The General Tax Code provides the taxpayer the possibility of obtaining a binding ruling. The biding ruling is limited to a certain time period, which is determined on a case-by-case basis by the tax authorities. The ruling is subject to the payment of a fee. Cabo Verde does not currently provide for APAs—that is, there is no explicit legal or regulatory framework allowing taxpayers to enter APAs with the tax authorities regarding transfer pricing arrangements.
- Rulings (selected)
- Enhanced engagement or cooperative compliance programmes (not selected)
- Advance Pricing Agreements (APA) (not selected)
- International Compliance Assurance Programme (ICAP) (not selected)
- Mutual Agreement Procedures (selected)
- Other (please specify): (not selected)
Currently, the Simplified and Streamlined Approach (Amount B) is under consideration and being evaluated in Cabo Verde.
- N/A (selected)
- N/A (selected)
As a member of the Inclusive Framework, Cabo Verde has endorsed the political commitment to implement the Simplified and Streamlined Approach (Amount B). However, as of July 2025, there is no domestic regulation yet concerning its application.
As of July 2025, Cabo Verde has no domestic regulation implementing the Simplified and Streamlined Approach (Amount B). Accordingly, there is no legal basis to respect or give effect to the outcome of such approach applied by another jurisdiction that is not a covered jurisdiction. Any potential recognition would depend on future domestic legislation or applicable Double Taxation Agreements through the MAP process.
Legal ReferenceArticle 4, Ministerial Order (Portaria) n.º 75/2015, of the 31st of December Article 65 paragraph 5 of the Corporate Income Tax Code
Year-end accounting adjustments are required in those circumstances where the companies use an arm’s length range and, at the end of the year, need to adjust a profit level indicator in order to comply with that arm’s length range. Companies are not allowed to perform corresponding adjustments.
Legal ReferenceArticle 2, paragraph 1-b), Ministerial Order (Portaria) n.º 75/2015, of the 31st of December
6 Treaties in force (Portugal, Mauritius, Macau, Spain, Economic Community of West African States (ECOWAS). Cabo Verde has also signed double tax treaties with Angola, Equatorial Guinea, Guinea-Bissau, Luxembourg, Morocco, São Tomé and Príncipe, Senegal, and Singapore, but these treaties are not yet in force.
- Article 7 as it read before 2010. (not selected)
- Article 7 as it reads after 2010. (selected)
- Other (please provide additional details) (not selected)
Legal ReferencePreamble, Article 2, paragraph 2-b) and Article 14 paragraph 2-c) of the Ministerial Order (Portaria) n.º 75/2015, of the 31st of December
Cabo Verde does not have any tax treaty with the pre-2010 version of Article 7 of the OECD Model Tax Convention. However, the preamble of the Ministerial Order (Portaria) n.º 75/2015, of the 31st of December, establishes that the application of the arm’s length principle to controlled transactions involving permanent establishments should consider the OECD guidance included in the Reports on the Attribution of Profits to Permanent Establishments, published in 2008 and 2010.
Domestic transactions are also subject to Transfer Pricing. They must be reported and should be in line with the arm’s length principle.
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