Employment Cost Calculator for Cabo Verde
Calculate the total cost of employing someone in Cabo Verde, including taxes, benefits, and our management fee.
Employer Tax Contributions
| Tax Type | Rate | Base |
|---|---|---|
| Social Security (Employer) | 15% - 16% | Gross monthly earnings |
| Social Security (Employee Withholding) | 8% - 8.5% | Gross monthly earnings |
| Corporate Income Tax | 22% | Company profits |
| Personal Income Tax (Withholding) | Progressive rates | Employee's gross income |
Filing & Compliance
- Social security contributions and withheld Personal Income Tax (IRPS) are due monthly by the 15th of the following month.
- Employers must register their company and employees with relevant bodies, including the INPS.
- Employers must provide employees with payslips and store records of payments.
Employee tax deductions in Cabo Verde are determined by a progressive income tax system and include social security contributions.
Income Tax (Imposto Único Sobre o Rendimento – IUR)
-
Tax-Exempt Threshold: Annual income up to 220,000 CVE is exempt from income tax.
-
Tax Brackets: Income exceeding the threshold is taxed according to these brackets (as of 2024):
- 16.5% on income between 220,001 and 960,000 CVE
- 30% on income exceeding 960,000 CVE
-
Withholding: Employers are responsible for withholding income tax from employee salaries and remitting it to the tax authorities.
Social Security Contributions
- Employee Contribution: Employees contribute 8.5% of their gross salary to the National Institute of Social Security (INPS).
- Employer Contribution: Employers contribute an additional 16% of the employee's gross salary to the INPS.
- Coverage: INPS contributions cover pensions, health benefits, and other social security programs.
Other Deductions
While less common than IUR and INPS, other potential deductions can include:
- Occupational Accident Insurance: Potentially 1% of the employee's gross income.
- Industry-Specific Contributions: Variable rates may apply depending on the employee's industry or sector.
General Tax Information
- Tax Year: The tax year in Cabo Verde runs from January 1st to December 31st.
- Tax Filing Deadline: The deadline to file corporate income tax returns is typically March 31st of the following year. Though specifics for individual income tax returns were not available in the provided sources, it's reasonable to expect a similar timeframe.
It is important to consult official Cabo Verdean government resources for the most up-to-date information. Tax laws and regulations are subject to change. This information is current as of February 5, 2025. It may not reflect the latest updates or specific individual circumstances.
