Law no.  23/IX/2018, of 22 January  

Repeals 2017 State Budget Law provisions, which set forth tax incentives for Stamp Duty and Property Tax (Imposto Único sobre o Património – “IUP”) purposes, approving new incentives, following the implementation of land registration in the islands of Sal, Boa Vista, São Vicente and Maio. Law no. 3/IX/2018 lists several facts that benefit from IPU exemption and from SD exemption, such as transfer of property and notarial acts.

Resolution no. 71/IX/2018, of 22 February

Approves for ratification the Agreement, signed in Washington D.C. (United States of America) on April, 13th 2017, concluded between the Government of the Republic of Mauritius and the Government of Cabo Verde for the Avoidance of Double Taxation and the prevention of fiscal evasion with respect to taxes on income, including an exchange of information mechanism between the two countries. The Convention sets the following withholding rates:

  • Dividends: 5%
  • Interest: 10%
  • Royalties: 7,5%



Law No. 4/2018, of 19 March 2018

This diploma approves the State Budget for financial year 2018. From a tax perspective, the following measures should be highlighted:

i) Definition of the taxable persons for Consumption Tax purposes

ii) New rates applicable to Consumption Tax on locally produced beverages (alcoholic – 25% and non-alcoholic -5%)



Government Decree no. 2/2018, of 21 February 2018

Regulations for Private Investment Procedures

The Government of Timor-Leste has enacted the aforementioned decree to regulate certain aspects of the New Private Investment Law recently approved by Law no. 15/2017, of 23 August. The Decree entered into force on 22 February 2018 and is applicable to all applications for investors certificate pending approval on 31 December 2017, except the applications that were already subject to a favorable opinion from the Commission for the Assessment of Private Investment and Export (CAIPE), in which case the Private Investment Law enacted by Law no. 14/2011, of 28 September 2011 and regulations approved by Decree no. 6/2005, of 27 July 2005 remain applicable.

Alongside with the provisions regarding eligibility for certain tax benefits and the negotiation of special investment contracts with the Government, the following provisions must be highlighted:

i) Investors can only be granted special benefits if the investment/reinvestment equals or exceeds (i) USD 50,000, for national investors; (ii) USD 500,000, for foreign investors; (iii) USD 250,000, for joint ventures or similar partnerships between foreign investors and national residents in which the latter holds at least 75% of the share capital

ii) An updated record of all investments benefitting from the special exemptions and benefits set out in the private investment regimes will be kept by TradeInvest Timor-Leste, I.P, regardless of such exemptions and benefits being granted by means of an investor certificate, special investment contract or statement of benefits



All information contained herein are of general nature and for informational purposes only. It does not therefore intend to be nor shall be construed as legal advice on any of the matters addressed.