G/SCM/N/401/CPV  
31 January  2024 
(24-0781) Page: 1/13 
Committee on Subsidies and  
Countervailing Measures  Original:  French  
 
  
SUBSIDIES  
NEW AND FULL NOTIFICATION PURSUANT TO ARTICLE  XVI:1 OF THE GATT  1994 AND 
ARTICLE  25 OF THE AGREEMENT ON SUBSIDIES AND COUNTERVAILING MEASURES  
CABO VERDE 
The following communication, dated and received on 24 January  2024, is being circulated at the 
request of the delegation of Cabo  Verde.  
 
_______________  
 
 
In the interests of transparency, please find herewith Cabo  Verde's full notification pursuant to 
Article  XVI:1 of the GATT  1994, and Article  25 of the Agreement on Subsidies and Countervailing 
Measures (SCM  Agreement) covering the period 2021 to 2022.  
In accordance with Article  25.7 of the SCM  Agreement , this notification does not prejudge the legal 
status, effects or nature of the notified programmes or measures under the GATT  1994 and the 
SCM Agreement.  
  G/SCM/N/401/CPV  
 
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  Table of contents  
1  INCENTIVES UNDER THE TAX BENEFITS CODE  ................................ .............................  3 
1.1  Investment promotion measures  ................................ ................................ ....................  3 
1.2  Incentives for the International Business Centre (CIA)  ................................ ......................  4 
1.3  Incentives under investment agreements  ................................ ................................ ........  6 
1.4  Incentives for Special Economic Zones (SEZs) ................................ ................................ .. 7 
1.5  Customs and tax benefits for agriculture, livestock farming, fisheries and the shipbuilding 
industry  ................................ ................................ ................................ .............................  9 
1.6  Industry incentives  ................................ ................................ ................................ ..... 10 
2  INCENTIVES UNDER THE FINANCE LAWS  ................................ ................................ ... 11 
2.1  Incentive for agricultural development  ................................ ................................ ..........  11 
2.2  Fisheries incentives  ................................ ................................ ................................ ..... 12 
 
  G/SCM/N/401/CPV  
 
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  1  INCENTIVES UNDER THE TAX BENEFITS CODE  
1.1  Investment promotion measures  
1. Title of the subsidy programme  
Tax benefits on investments  
2. Period covered by the notification  
From January 2021 to December 2022.  
3. Policy objective and/or purpose  
To encourage investment, including foreign direct investment; to encourage diaspora participation 
in economic development.  
4. Background and authority  
− Law No. 13/VIII/2012 of 11  July, amended by Decree -Law No. 34/2013 of 24  September 
(Investment Law), adopted by Parliament and published in Official  Journal No.  39, I Series, 
of 11 July 2012; 
− Articles  12 to 17 of the Tax Benefits Code (CAF), approved by Law  No. 26/VIII/2013 of 
21 January, amended and republished in Law No. 86/IX/2020 of 28  April, adopted by 
Parliament and published in Official Journal No.  53, I Series, of 28  April 2020; 
− Article  12.2(b) of the Value Added Tax  Code, approved by Law  21/VI/2003 of 14  July, 
adopted by Parliament and published in Official Journal No.  21, I Series, of 14  July 2003; 
− Article  7 of the Regulations on Excise Duties, approved by Law  No. 22/VI/2003 of 14  July, 
adopted by Parliament and published in Official Journal No.  21, I Series, of 14  July 2003.  
Cabo Verde  Trade  Invest is responsible for managing the programme.  
5. Form of the subsidy  
a. Qualifying enterprises are granted tax credit s on personal income tax (IRPC) and corporate 
income tax (IRS) corresponding to 30% of investments in the areas of health; the 
environment; the creative industries; tourism  or tourism promotion and touris t 
accommodation ; industrial activity; air and maritime transport services and port and 
airport services; renewable energy  production ; renewable energy equipment  production 
and assembly;  scientific research and investigation; and information and communication 
technolog y development . 
b. Tax credit s corresponding to 20% of relevant investments made in other areas . 
c. Tax credit s corresponding to 30% or 40% of investments (depending on where the 
investment is made) in Differentiated Merit Projects and emigrant s' investments . 
d. Exemption from the single wealth tax . 
e. Exemption from stamp duty on contractual financing operations in connection with the 
investment . 
f. Reduction of 95% in Customs duties for goods listed under Article  15 of the Tax Benefits 
Code. 
g. Value added tax (VAT) and excise dut y exemptions on imports of all goods that are exempt 
from customs duties.  
 G/SCM/N/401/CPV  
 
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  6. To whom and how the subsidy is provided  
The subsidy is granted to enterprises registered with Cabo  Verde  Trade  Invest and to projects 
undertaken by emigrants who meet the conditions and requirements under Article  6 of the Tax 
Benefits Code , and who must apply to avail themselves of the subsidy . 
All investment projects carried out within the framework of  the Investment Law and approved by 
Cabo Verde  Trade  Invest, are subject to a favourable opinion from the ministerial department 
responsible for the sector in which the investment is to be made.  
In the case of the i ncome tax credit , the deduction  is made upon payment of the IRPC and IRS for 
the year in which the investments were made and cannot exceed 50% of the annual tax liability . 
The reduction in customs duties and exemptions from VAT and excise duties are granted upon 
import ation of the goods . 
Exemption from the wealth tax is granted upon declaration of the assets.  
Lastly, the stamp duty benefit is granted when an application for financing is made in connection 
with the investment.  
7. Total amount1 of the subsidy  
For 2021: Approximately EUR  112 million.  
For 2022: Approximately EUR  79 million.  
8. Duration of the subsidy  
The regulation has been in force since 1  January  2013 and the programme is ongoing.  
9. Statistical data permitting an assessment of the trade effects of the subsidy  
No data  available . 
1.2  Incentives for the International Business Centre (CIA)  
1. Title of the subsidy programme  
Tax benefits for the International Business Centre located on the island of São  Vicente (city of 
Mindelo).  
2. Period covered by the notification  
From January 2021 to December 2022.  
3. Policy objective and/or purpose  
To develop the productive fabric, economic competitiveness and internationalization of industrial 
enterprises; to facilitate, support and foster new industrial activities ; and to promote job creation.  
 
1 General State Accounts for the fiscal year 2022 . Source:  https://www.mf.gov.cv/web/dnocp/contas -
geral-estado  (Contas Gerais do Estado  2021 and 2022 - Relatório e mapas ) G/SCM/N/401/CPV  
 
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  4. Background and authority  
Articles  15, 18 and 20 of the Tax Benefits Code  approved by Law  No. 26/VIII/2013 of 21  January, 
amended and republished in Law No. 86/IX/2020 of 28  April, adopted by Parliament and published 
in Official Journal No.  53, I Series, of 28  April 2020.  
The programme is run by the International Business Centre managing body.  
The International Business Centre is administered by  the company  Zona Franca Comercial de Cabo 
Verde (FIC).  
5. Form of the subsidy  
Tax benefits provided:  
a. Reduced corporate income tax rate on income from industrial activities that create at least 
10 jobs. The tax benefit rates  are as follows : 
− 5% for entities with 10 or more dependent workers;  
− 3.5% for entities with 20 or more dependent workers;  
− 2.5% for entities with 50 or more dependent employees . 
The highest standard  corporate income tax rate is 25%.  
b. Exemption from c ustoms duties upon the import ation of goods and equipment listed under 
Article  15 and meeting the conditions under Article  6 of the Tax Benefits Code. 
c. Exemption from tamp duty on contractual financing operations in connection with the 
investment, and from VAT and the single wealth tax . 
d. Exemption from notarial fees and charges . 
e. Entities holding share  capital  in companies licensed and operating in the International 
Business Centre are exempt from income tax with respect to:  
− Dividends paid  to them by those companies, which have been taxed in accordance 
with the preceding sections;  
− Interest and other forms of remuneration on  capital advances  or contributions made 
by entities to the company, or due because they do not take the dividends or earnings 
made available to them.  
6. To whom and how the subsidy is provided  
Exemptions are provided to industrial companies that are duly licensed and operating in the 
International Business Centre . Enterprises must be licensed to operate in the International Business 
Centre by its managing body, which also is in charge of overseeing their activities. The tax authorities 
(São Vicente tax office) are responsible for ensuring compliance with the tax regime.  
The reduction in IRS and the tax on dividends are granted when the income is declared and  paid. 
The benefits with respect to customs duties, VAT and excise duties are granted upon import ation of 
the goods . 
The benefit in the form of e xemption from notarial fees and charges is granted when documents and 
deeds are authenticated by the notary services.  
Exemption from the wealth tax is granted upon declaration of the assets.  
The stamp duty benefit is granted when the investor applies for financing.  
During the period covered by this notification, seven enterprises were registered and received  
benefits  offered in relation to the International Business Centre : A POUTADA CV, S .A.; AFROPANTS G/SCM/N/401/CPV  
 
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  CV, LDA; ATUNLO CV, S .A.; CVFIRE - FIRE FIGHTING EQUIPMENTS, LDA; EVERY MESSAGES 
INTERNATIONAL CONSULTORIA LDA ( provision of services ); ICCO – INDÚSTRIA DE COMPONENTES 
E CALÇADO ORTOPÉDICO, LDA; NORTUNA HOLDING CV, S .A.; SODIFAR – SOCIEDADE 
DISTRIBUIDORA DE PRODUTOS FARMACÊUTICOS; VERDEVESTE – INDÚSTRIA DE VESTUÁRIO, 
SARL.  
7. Total amount2 of the subsidy  
For 2021: Approximately EUR  765,000. 
For 2022: Approximately EUR  197,000. 
NB: These figures relate solely to exemptions from customs taxes and duties. No data are available 
for the IRPC, the IRS, the wealth tax, notarial fees  and charges , tax on dividends, and stamp duty.  
8. Duration of the subsidy  
The programme was implemented on 1  January  2013 and its duration was not predetermined . 
However, the tax benefits set out in (a) above (reduced IRS rates) will remain in force until 2030.  
9. Statistical data permitting an assessment of the trade effects of the subsidy  
No data  available . 
1.3  Incentives under investment agreements  
1. Title of the subsidy programme  
Investment agreements.  
2. Period covered by the notification  
From January 2021 to December 2022.  
3. Policy objective and/or purpose  
Economic development and investment promotion.  
4. Background and authority  
− Article  16 of the Tax Benefits Code  approved by Law  No. 26/VIII/2013 of 21  January, 
amended and republished in Law No. 86/IX/2020 of 28  April, adopted by Parliament and 
published in Official Journal No.  53, I Series, of 28  April 2020. 
− Article  5(2) of Law  No. 13/VIII/2012 of 11  July, amended by Decree -Law No. 34/2013 of 
24 September ( Investment Law), adopted by Parliament and published in Official  Journal 
No. 39, I Series, of 11  July 2012. 
− The investment agreement between the State and Frescomar , approved by Resolution of the 
Council of Ministers No.  59/2019 of 9  May 2019 and published in Official Journal No.  50, 
I Series, of 9  May 2019.  
The agreement is managed and administered by Cabo  Verde  Trade  Invest.  
5. Form of the subsidy  
The level and type of benefits  provided are negotiated and specified in a formal contract 
(establishment agreement) between the Government and investors, and the benefits ' modalities  are 
determined based on the value of the investment and where it is made.  
 
2 General State Accounts for the fiscal year 2022 . Source: https://www.mf.gov.cv/web/dnocp/contas -
geral-estado  (Contas Gerais do Estado  2021 and 2022 - Relatório e mapas ) G/SCM/N/401/CPV  
 
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  The benefits provided under the investment agreement with Frescomar  include : 
− Exemption from c ustoms duties and VAT for import s of all products listed under Article  11 
of the agreement . 
− Exemption from the IRS and from the tax on dividends and profits distributed to shareholders 
and partners for five  years from 25  August  2019.  
6. To whom and how the subsidy is provided  
It is provided to projects linked to Cabo Verde's national economic development programme , and 
that involv e a minimum investment CVE 10  million and the creation of at least 100 new jobs within 
three  years. However, the Tax Benefits Code provides that such benefits cannot extend beyond 
15 years and  cannot result in an effective tax rate that is less than 20% of the general rate in force.  
The Government may also, exceptionally, enter into investment agreements of a lower value than 
that provided for under Article  16 of the Tax Benefits Code , which, in view of their economic, social, 
environmental, financial or technological impact , are considered extremely relevant to reducing 
regional asymmetries or promoting technological innovation, scientific research and sustainable 
development (Article  21.3 of the Tax Benefits Code ). 
Recipients are audited on an annual basis by the tax authorities.  
The subsidy is provided in accordance with the provisions of the establishment agreement.  
7. Amount of the subsidy  
No data  available . 
8. Duration of the subsidy  
Under the Tax Benefits Code , agreements are concluded for a maximum duration of 15  years, 
regardless of whether they are renewable  or not . Tax exemptions cannot be granted for more than 
five years.  
The establishment agreement signed with Frescomar is for five years , effective  as of 
25 August  2019. The programme is ongoing.  
9. Statistical data permitting an assessment of the trade effects of the subsidy  
No data  available . 
1.4  Incentives for Special Economic Zones (SEZs)  
1. Title of the subsidy programme  
Special economic zones.  
2. Period covered by the notification  
From January 2021 to December 2022.  
3. Policy objective and/or purpose  
To reduce regional asymmetries and to promote technological innovation, scientific research and 
sustainable development.  
4. Background and authority  
− Article  21 of the Tax Benefits Code  approved by Law  No. 26/VIII/2013 , of 21  January, 
amended and republished in Law No. 86/IX/2020 of 28  April, adopted by Parliament and 
published in Official Journal No.  53, I Series, of 28  April 2020. G/SCM/N/401/CPV  
 
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  − Law 91/IX/2020 , of 19  June, establishing the foundations of the legal regime for the 
creation, organization, development and operation of special economic zones, adopted by 
Parliament and published in Official Journal No.  72, I Series, of 19  June 2020. 
− Law No. 94/IX/2020 , of 13  July, establishing the Special Maritime Economic Zone in 
São Vicente (ZESMSV), adopted by Parliament and published in Official  Journal No.  82, 
I Series, of 13  July 2020. 
− Law No. 11/X/2022 , of 6 June, establishing the Special Economic Zone on the island of Maio 
(ZESIM), adopted by Parliament and published in Official Journal No.  55, I  Series, of 
6 June 2022. 
Pursuant to Article  21 of the Tax Benefits Code  and the provisions of the laws establishing the 
aforementioned zones, investments made in the zone are subject to  the same regimes as the 
International Business Centre with regard  to requirements and conditions.  
The ZESMSV is administered by the ZESMSV  Authority (established by Decree -Law No. 69/2020 of 
17 September).  
The ZESIM is managed by the ZESIM  Authority.  
5. Form of the subsidy  
The level and type of benefits available are set out in the legal texts establishing the SEZs.  
The Law establishing the ZESMSV (Article  21) stipulates that the tax benefits and incentives for 
investments made in the zone shall be determined by the Government through regulations. 
According to that  law, the ZESMSV will replace the International Business Centre by absorbing the 
enterprises operating there. 
Investments made in the ZESIM qualify for certain tax benefits in the form of:  
− IRPC and IRS t ax credits under the conditions set out in Articles  30 and 31 of the Law 
establishing the ZESIM ; 
− Exemption from customs duties and all taxes and duties payable upon the import ation of all 
goods required to carry out activities relating to the investment;  
− Exemption from stamp duties and the wealth tax.  
6. To whom and how the subsidy is provided  
The subsidy is provided to SEZ -eligible enterprises as long as they meet the access conditions set 
out in the legal texts establishing these zones. In other words, t he legal texts creating these zones 
lay down the conditions for being granted access to them . 
For the ZESMSV, to receive the benefits , investments must be duly registered with the ZESMSV 
office  (there is only one)  and licensed by the ZESMSV Authority (created by 
Decree -Law No. 69/2020, of 17 September, adopted by the Council of Ministers and published in 
Official  Journal No.  110, Series I, of 17  September  2020). Furthermore, the granting of special 
incentives to the ZESMSV entity or enterprise is subject to a minimum inv estment of 
CVE 275,000,000.  
For the ZESIM, o nly companies and branches that meet the eligibility requirements set out in 
Article  28 of the Law establishing the ZESIM can avail themselves of the benefits  offered therein . 
The IRS reduction is granted when the income is declared and paid.  
Exemption from customs  duties , VAT and excise dut ies is granted upon import ation of the goods . 
Exemption from notarial fees and charges is granted when documents and deeds are authenticated 
by the notary services.  
Exemption from the wealth tax is granted upon declaration of the assets.  G/SCM/N/401/CPV  
 
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  Lastly, the stamp duty benefit is granted when an application for financing is made in connection 
with the investment.  
7. Amount of the subsidy  
No data  available . 
8. Duration of the subsidy  
The duration of these programmes  was not predetermined . For the ZESMSV , the programme entered 
into force in 2020 and is ongoing. For the ZESIM , the regulations  came into force on 6  June 2022 
and the zone is currently being set up.  
9. Statistical data permitting an assessment of the trade effects of the subsidy  
No data  available . 
1.5  Customs and tax benefits for agriculture, livestock  farming , fisheries and the 
shipbuilding industry  
1. Title of the subsidy programme  
Tax benefits for agriculture, livestock  farming , fisheries and the shipbuilding industry.  
2. Period covered by the notification  
From January 2021 to December 2022.  
3. Policy objective and/or purpose  
To modernize and expand agriculture, cooperatives, livestock farming and fisheries ; to support the 
shipbuilding and ship maintenance industries.  
4. Background and authority  
− Article  14 of the Corporate Income Tax Code (CIRS) , approved by Law  No. 82/VIII/2015 of 
7 January, adopted by Parliament and published in Official Journal No.  3 of 8  January  2015. 
− Article  47 of the Tax Benefits Code , approved by Law  No. 26/VIII/2013 of 21  January, 
amended and republished in Law No. 86/IX/2020 of 28  April, adopted by Parliament and 
published in Official Journal No.  53, I Series, of 28  April 2020. 
− Articles  12.1(a) and 9 of the Value Added Tax Code , approved by Law  No. 21/VI/2003 of 
14 July, adopted by Parliament and published in Official Journal No.  21, I  Series, of 
14 July 2003. 
− Article  7 of the Excise Duty Regulations , approved by Law  No. 22/VI/2003 of 14  July, 
adopted by Parliament and published in Official Journal No.  21, I Series, of 14  July 2003. 
The National State Revenue Department of the Ministry of Finance is responsible for considering 
applications for tax incentives.  
5. Form of the subsidy  
Tax benefits in the form of:  
− Corporate income tax credit (50% reduction on the normal rate) for taxpayers engaged 
exclusively in fish ery and farming activities and registered in the organized accounting 
regime ; 
− Tax benefits in the form of exemptions from customs duties, VAT and excise duties upon the 
import ation of goods intended for agricultural holdings, agricultural tools, apparatus , 
machinery, irrigation equipment and materials, fishing vessels, as well as materials intended 
for the manufacture or construction of vessels of all types, and materials intended for the 
repair and replacement of such vessels.  G/SCM/N/401/CPV  
 
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  6. To whom and how the subsidy is provided  
Enterprises engaged in agriculture, livestock farming, fisheries , and the shipbuilding industry, as 
well as agricultural enterprises grouped together in cooperatives.  
For agricultural and cultural (handicrafts ) cooperatives , 75% of in the cooperative 's workers must 
be members, and 75% of members must work effectively and continuously for the cooperative.  
Exemptions are granted at the importer's request and with the approval of the administrative 
department responsible for agriculture, forestry, livestock  farming , fisheries and the transport 
sector, when  imports are declared to the Customs Regimes and Procedures Department of the 
Directorate General of Customs.  
The IRS tax credit is granted when the income tax return is filed. 
7. Total amount3 of the subsidy  
For 2021: Approximately EUR  351,000. 
For 2022: Approximately EUR  298,000. 
This amount relates only to incentives granted to the shipbuilding industry. The amounts for 
agriculture, livestock farming and fisheries are set out under Sections 2.1 and 2.2 of this document.  
8. Duration of the subsidy  
The regulation has been in force since 1  January  2013 and the programme is ongoing.  
9. Statistical data permitting an assessment of the trade effects of the subsidy  
No data  available . 
1.6  Industry incentives  
1. Title of the subsidy programme  
Industry incentives . 
2. Period covered by the notification  
From January 2021 to December 2022.  
3. Policy objective and/or purpose  
To support economic competitiveness, investment promotion and sustainable development.  
4. Background and authority  
− Article s 48.1 and 48.2 of the Tax Benefits Code , approved by Law  No. 26/VIII/2013, of 
21 January, amended and republished in Law No. 86/IX/2020, of 28  April, adopted by 
Parliament and published in Official Journal No.  53, I Series, of 28  April 2020.  
The National State Revenue Department of the Ministry of Finance is responsible for considering 
applications for tax incentives.  
 
3 General State Accounts for the fiscal year 2022 . Source: https://www.mf.gov.cv/web/dnocp/contas -
geral-estado  (Contas Gerais do Estado  2021 and 2022 - Relatório e mapas ) G/SCM/N/401/CPV  
 
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  5. Form of the subsidy  
− Exemption from c ustoms duties upon the import ation of  raw materials, finished and semi -
finished products  and materials , intended to be incorporat ed into manufactured products as 
part of approved industrial projects, during the installation, extension or renovation phase, 
and during the first four years from the licensing date . 
− Exemption from customs duties for imports of materials that are incorporated or used in the 
production of goods or services intended for the production of electricity from renewable 
sources.  
6. To whom and how the subsidy is provided  
Exemptions are granted to companies that are registered in the land registry, have a licence from 
the Ministry of Industry and Energy , and are involved in an investment project that has been 
approved by Cabo  Verde  Trade  Invest.  
Tax incentives are granted during the installation, extension and renovation  phases , and for the first 
four years of operation.  
7. Total amount4 of the subsidy  
For 2021: Approximately EUR  4.815  million.  
For 2022: Approximately EUR  3.049  million.  
8. Duration of the subsidy  
The regulation has been in force since 1  January  2013 and the programme is ongoing.  
9. Statistical data permitting an assessment of the trade effects of the subsidy  
No data  available . 
2  INCENTIVES UNDER THE FINANCE LAWS  
2.1  Incentive for agricultural development  
1. Title of the subsidy programme  
Incentive for the desalination of water  for agricultural use , and incentives for agricultur al and 
livestock farmers to regularize rural buildings.  
2. Period covered by the notification  
From January 2021 to December 2022.  
3. Policy objective and/or purpose  
To assist farmers in the process of regulariz ing the registration of rural properties; to increase water 
availability for agriculture , and to promote the use of renewable energy to produce water for 
agriculture.  
4. Background and authority  
− Articles  42 and 43 of the Law on Finance for the fiscal year 2021 , approved by 
Law No. 109/IX/2020 of 31  December, adopted by Parliament and published in Official 
Journal No.  102 of 31  December  2020. 
 
4 General State Accounts for the fiscal year 2022 . Source: https://www.mf.gov.cv/web/dnocp/contas -
geral-estado  (Contas Gerais do Estado  2021 and 2022 - Relatório e mapas ) G/SCM/N/401/CPV  
 
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  − Articles  39 and 41 of the Law on Finance for the fiscal year 2022 , approved by 
Law No. 4/X/2021 of 31  December, adopted by Parliament and published in Official Journal 
No. 129 of 31  December  2021.  
The National State Revenue Department of the Ministry of Finance is responsible for considering 
applications for tax incentives.  
5. Form of the subsidy  
Tax benefits:  
− Exemption from customs duties and VAT upon import ation of machinery, equipment and 
accessories and spare parts, as well as all types of material required to desalinate water for 
agricultural use, carried out by duly accredited and authorized enterprises in the sector . 
− Exemption from customs duties and VAT upon import ation of photovoltaic panels and their 
inverters to produce  electricity from solar energy, batteries to be used  exclusive ly for storing 
solar energy generated for use in the process of producing water for agricultural use, carried 
out by enterprises, associations in the agricultural sector, as well as agricultural cooperatives 
and other producers' organizations.  
− Exemption from the wealth tax.  
6. To whom and how the subsidy is provided  
The programme covers  farms, specifically agricultural and livestock farmers , who are duly certified 
by the body responsible for manag ing water for agriculture and the National Environment Authority.  
7. Total amount5 of the subsidy  
For 2021: Approximately EUR  263,000. 
For 2022: Approximately EUR  335,000. 
8. Duration of the subsidy  
The measure was in force during the fiscal years 2021 and 2022.  
9. Statistical data permitting an assessment of the trade effects of the subsidy  
No data  available . 
2.2  Fisheries incentives  
1. Title of the subsidy programme  
Exemption from fishing licence fees for small -scale fishing vessels up to 5  tonnes , and Economic 
Subsidy Programme for the price of diesel used by fishing vessels.  
2. Period covered by the notification  
From January 2021 to December 2022.  
3. Policy objective and/or purpose  
The aim of the programme is to reduce poverty and improve the living conditions of people whose 
livelihoods depend mainly on fishing. The programme specifically aims to increase the financial 
capacity of target communities and diversify their livelihoods b y reducing the market price of fish 
products.  
 
5 General State Account for the fiscal year 2022. Source: https://www.mf.gov.cv/web/dnocp/contas -
geral-estado  (Contas Gerais do Estado  2021 and 2022 - Relatórios e mapas ) G/SCM/N/401/CPV  
 
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  Another key objective of the programme is to a lign the domestic market price of marine diesel oil 
paid by fish ery companies or fisher s with the international market price.  
4. Background and authority  
− Article  37 of the Law on Finances for the fiscal year 2021, approved by Law  No. 109/IX/2020 
of 31  December, adopted by Parliament and published in Official Journal No.  102 of 
31 December  2020. 
− Article  35 of the Law on Finances for the fiscal year 2022, approved by Law  No. 4/X/2021 , 
of 31  December, adopted by Parliament and published in Official Journal No.  129 of 
31 December  2021.  
The National State Revenue Department of the Ministry of Finance is responsible for considering 
applications for tax incentives.  
5. Form of the subsidy  
Tax exemptions and reductions ( recipients are exempt from pay ing fees due in order to obtain  fishing 
licences; recipients shall be able to purchase fuel at a price set by the competition authority, ensured 
by a suspensive customs regime for fuel imported for this purpose).  
This exemption applies on condition that the vessels concerned are registered in the National Vessel 
Registration System and that the title holder does not own more than one vessel.  
6. To whom and how the subsidy is provided  
Recipients are the owners or operators (natural or legal persons) of  fishing vessel s ; professional 
fishers and fishing industries.  
In practice, recipients pay less than the normal national price for marine diesel oil. The difference 
results from  the competition authority setting a different price for fishers. It should also be noted 
that the fuel supplied to the fishers is covered by  a suspensive customs regime  (free of all customs 
duties that would normally be due).  
To be eligible for the alignment programme, fishing companies and fishers must comply with certain 
administrative procedures, namely being registered in the National Vessel Registration System and 
licensed by the National Fisheries Directorate. The fuel is supplied in the presence  of representative 
of the gendarmerie  office responsible for tax affairs, who ensur es that the requirements  have been 
met. 
7. Total amount6 of the subsidy  
For 2021: Approximately EUR  181,000. 
For 2022: Approximately EUR  183,000. 
8. Duration of the subsidy  
From January 2021 to December 2022.  
9. Statistical data permitting an assessment of the trade effects of the subsidy  
No data  available . 
 
__________  
 
6 General State Account for the fiscal year 2022. Source: https://www.mf.gov.cv/web/dnocp/contas -
geral-estado  (Contas Gerais do Estado  2021 and 2022 - Relatórios e mapas )