A simplified guide to REMPE and TEU in Cape Verde

O Special Regime for Micro and Small Enterprises (REMPE) is a key tax measure in Cape Verde, designed to promote the formalisation, competitiveness and development of MSEs (Micro and Small Enterprises).

The core of this regime is the Special Unified Tax (TEU), This dramatically simplifies the fulfilment of tax obligations.

1. What is REMPE and who qualifies?

REMPE is the special legal regime that covers companies based on the criteria of employees and turnover:

Important Note: Membership of REMPE is not automatic. MSE status is recognised through certification.

2. The Special Unified Tax (TEU)

The TEU is the simplified form of taxation for companies covered by REMPE.

A. What does TEU replace?

The TEU replaces, for all intents and purposes, the following taxes:

• Corporate Income Tax (IRPC)
• Value Added Tax (VAT)
• Single Social Tax (TSU) on the employer

B. What is the rate?

C. Tax incentives for new companies

Companies that join REMPE benefit from TEU reductions for the first few years:

3. Key obligations and procedures

The simplified regime requires a number of simplified but crucial obligations:

• TEU declaration and payment:
  • Frequency: Quarterly.
  • Deadline: By the last working day of the month following the quarter (April, July, October, January).
  • Document: Mod. 107 (available on the Citizen's Portal - Porton di Nos Island).
  • Follow-up: The quarterly payments must be accompanied by the sales and purchase ledgers.
• Simplified Accounting: MSEs in REMPE are exempt This reduces administrative costs and bureaucracy. They should, however, keep a simple record of sales, purchases and expenses.
• Social Security: Employees of REMPE companies benefit from the social protection scheme for employees.

How S&D Consultancy can help

Navigating REMPE and TEU is easier with the right support. A S&D Consultancy is an expert in:

• REMPE certification: Support in obtaining MSE status.
• Accounting and taxation: Complete management of tax obligations (Mod. 107, purchase and sales ledgers) so that your company is always compliant.
• Strategic Planning: Advice on the best tax option for your business (REMPE vs. Organised Accounting).

Do you want to simplify tax management and focus on your company's growth? Contact us