Cape Verde is a small island country that’s an archipelago off the coast of West Africa. The small population of over 550,000 speaks the Creole language as a result of slave communities not speaking their native language. They combined a little bit of Portuguese and bits of words from other sources to talk without their words being detected. Today, the language differs from island to island.
Globalization Partners wants to help create a world where companies can expand quickly and easily. If you’re considering opening a subsidiary in Cape Verde, we can make the process easier by using our existing subsidiary instead. When you choose Cape Verde payroll outsourcing with us, we’ll take care of paying your employees and meeting all compliance requirements on your behalf.
Taxation Rules in Cape Verde
Cape Verde’s taxation laws apply to both corporations and employees. Resident companies need to pay a 22% corporate income tax. Micro- and small-sized companies also need to pay a single special tax (SST) of 4%. Personal income taxes follow a progressive rate that ranges from 16.5 to 27.5% depending on how much an employee makes.
Cape Verde Payroll Options for Companies
Companies like yours have four different Cape Verde payroll options:
- Internal: An internal payroll is usually only a good option for large subsidiaries with big staffs and budgets. Make sure you have all the resources to succeed before establishing this type of payroll.
- Remote: Other subsidiaries may want to streamline the payroll process by adding employees to the parent company’s payroll. Doing so ensures that all employees stay on one payroll, but they’ll have different regulations by country.
- Cape Verde payroll processing company: If you need to outsource your payroll, one option is working with a Cape Verde payroll processing company. This option keeps money in the local economy, but you’ll still be responsible for all matters of compliance.
- Cape Verde payroll outsourcing: Your final option is Cape Verde payroll outsourcing with Globalization Partners. As a global PEO, we’ll make sure you don’t have to worry about your payroll or compliance.
How to Set Up a Payroll in Cape Verde
Before you jump in and set up your Cape Verde payroll, you need the necessary infrastructure in place. A subsidiary will help you hire employees, pay them, give out benefits, and work legally. You need this registered entity in place before you establish your payroll, but the initial step could take months of your time.
Globalization Partners eliminates this requirement completely, so you can work in as little as a day. You can use our Cape Verde PEO to pay your employees, and we’ll act as the Employer of Record to handle compliance. You can feel confident that your employees are getting the right amount paid to them on time, which means you can focus on growing your business.
Entitlement and termination terms are a necessary part of an employment contract, and you should make these terms clear before choosing a Cape Verde payroll option. Employees should always get prior notice of a dismissal ranging from 15 days to two months depending on how long they’ve worked for your company.
Payroll Processing Company in Cape Verde
You can count on Globalization Partners to be a part of your team during an exciting global expansion. Contact us today to learn more about Cape Verde payroll outsourcing.