Cape Verde's Ministry of Finance has published Decree-Law 74/2020, which was originally published in the Official Gazette on 12 October 2020 and sets out the conditions for taxpayers to request binding tax information rulings. The Decree-Law includes that requests for binding rulings may be made by taxpayers, other interested parties, or legal representatives with the tax office for the area in which the taxpayer is domiciled. Certified lawyers, auditors, accountants, and other entities qualified to exercise tax consultancy may also request binding rulings in relation to the tax situation of their clients.
Once the application is submitted, the tax administration is obliged to respond and notify the applicant within a maximum of 75 days. However, an urgent response within 45 days may be provided for justified requests, provided that the request is accompanied by a legal-tax framework proposal. The tax authority must notify an applicant within 30 days on whether a request is accepted as urgent.
Once issued, a ruling is binding on the tax administration and may not be deviated from, except in compliance with a judicial decision. The term of validity of a binding ruling must be explained by the tax administration at the time of issuance. A binding ruling may expire, however, if there are subsequent changes in the factual or legal assumption on which the ruling is based. Further, a binding ruling may be revoked, with future effect, after one year of issuance under the terms of the law for the safeguarding of legitimate rights and interests previously established.
The fee for standard rulings is between 1 and 50 units, depending on the complexity of the matter. The fee for urgent rulings is between 10 and 100 units, depending on the complexity of the matter. For this purpose, 1 unit is equal to the national minimum wage.
Decree-Law 74/2020 is generally effective from 12 October 2020.