Taxation - EN

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The Angolan tax system comprises the following taxes:

Corporate tax

This is a direct tax on profits made by corporate bodies, such as limited companies, trusts, clubs, societies, associations and cooperatives. This tax is applied in terms of the corporate Income Code of 1972 and amended by Law 18/92. The more common rate is 35%. This rate is the same for resident and non-resident companies. Special tax regimes apply to companies engaged in petroleum and mining operations.

Companies with foreign investment usually fall under group A:

• State companies
• Public Limited Companies
• Commercial Partnerships with share capital superior to 35 UCF´s (Fiscal Correction Unit)
• Any taxpayer whose gross abroad but having a Permanent Establishment

Payment: Group A companies must pay corporate income tax by the 31 of May of the following the year. Nevertheless, 75% of the final tax amount (based on last year) must be paid in January, February and March.

Law 7/97

This tax constitute an advance payment of corporate income tax for resident companies (3,5%). For non residents entities, the payment of Law 7/97 (5,25%) is the final tax liability. All contractors/service providers are subjected to this Law. The contract must submit to the Tax office and any amendment. The payment will be made until the end of month for which tax is due.

Stamp Duty

Stamp Duty is levied on all acts, deeds, securities and other transactions. The most common rate is 1% (applied in all amounts received from customers). In Bank guarantees the tax is 0,3%

The current payments of stamp duty (1% of amount received) must be paid by the end of the month following the one in which the act took place.

Taxation of Capital Gains

The most common tax rate is 10 % applied in amount distributed. This amount will be paid after the decision of distribution.

Income of the year: 100.000,00 USD

Corporate Tax: 35.000,00 USD (100.000,00 * 35%)

Advance Payments (by Law 7/97): 1.000,00 USD (only the amount retained in contracts with resident companies)

Advanced Payment in current year:

6.000,00 + 6.000,00 + 6.000,00 (In January, February and March) = 18.000,00 USD (for exemple)

Reserves: 10.000,00 USD (for exemple)

Dividends: 55.000,00 USD (amount after reserves)

Capital Gains: 5.500,00 (55.000,00*10%).

Corporate Tax: 35.000,00 – the amount already paid (Law 7/97 in contracts with residents companies and advance payments in January, February and March)

Consumption Tax

This tax is applied to manufactured goods, imported goods, electricity and water and tourism (restaurants…) services. De tax rate depending of goods and services (Between 2 and 30%). The most common rate is 10% 

Tax Incentives

Special Tax are available for investment in listed development areas, priority sectors and other relevant investments. The incentive tax depend of zone of investment and priority Sectors. The incentives include Exemption/deduction of import duties and corporate tax (until 15 years)

Table of Redutions
PRIORITY SECTORS	DEVELOPMENT AREAS		REDUTIONS
	CODE	DESCRIPTION	Import tax		Corporate tax		Capital Tax	SISA TAX
Manufacturing Fisheries Industry Construction Health and education   Road infrastructure, railway, port and airport, telecommunications, energy and water   Equipment of large loads and passengers	A	Province of Luanda, the municipalities headquarters of Provinces of Benguela, Huíla, Cabinda and municipalitie of Lobito	.Three years of exemption in import of equipment, heavy vehicles and technology . 50%.,if used.	.Five years of exemption in import of raw material for production of goods, since begin of procuction	8 Years of exemption	Until 100 % is costs: - all costs of carrying out the construction and repair of roads, railways, telecommunications, water supply and social infrastructure for workers, their families and population of these áreas - all charges, which carry out the training in all fields of social and productive -all the expenses resulting from investment in the cultural sector and / or the purchase of works of art, authors or creators Angolans, provided that when classified, remain in the country and are not sold during a period of 10 years	5 Years of Exemption on the distributed profits	Companies that promote investment operations covered by this law are exempt from payment of tax, tax for the acquisition of land and buildings attached to the project, and therefore to request the competent tax division.
	B	Other municipalities of provinces of Benguela, Cabinda e Huíla and Provinces of Cuanza-Sul, Bengo, Uige, Cuanza-Norte, Lunda-Norte and Lunda-Sul.	.Four years of exemption in import of equipment, heavy vehicles and technology . 50%.,if used.		12 Years of exemption		10 Years of Exemption on the distributed profits
	C	Provinces of Huambo, Bié, Moxico, Cuando Cubango, Cunene, Namibe, Malange and Zaire.	.Six years of exemption in import of equipment, heavy vehicles and technology . 50%.,if used.		15 Years of Exemption .15 years for subcontractors of the project		15 Years of Exemption on the distributed profits

Personal Income Tax

This tax is applies to income resulting from personal services rendered in Angola. This tax is levied of total remuneration (Salary and others allowances) received for personal services rendered in Angola (for national and non national citizens). The company must pay this tax by the end of the following month.It was recently updated by decree No. 74/08, June 3, updating the progressive rates and incoming subjects of the same.

The current income Tax is the following:

The contributions to pension is calculated on the gross value of the various taxable wages, less the discount rate of IRT.A to apply is 3% in the part of the employee and 8% in the company.

• The base salary
• Wages particular that, under the Wage Act, are assigned to certain jobs that require a wage specific treatment
• Premiums and other material incentives granted under the Wage Act and its diplomas regulations
• The salaries for the provision of work extraordinary and the provision of night work or shift
• Subsidies of residence, income, home and others of a similar nature, which have a regular basis
• The severance payments without just cause and the amounts paid to workers in compliance with agreement
• The commissions, bonuses, awards, income, productivity, attendance, billing and otherbenefits of a similar nature, which have a regular basis
• The diuturnidades, participation in company's profits and allowances for failures
• Subsidies for food and function and responsibility
• The subsidy scheme by availability of work.

Are not considered wages

• Subsidies of transport
• The daily allowance
• The compensation paid by the non - granting of leave or period of rest
• The additional benefits Social Security regulations paid by the company
• Subsidies paid by the company to workers to study their children
• Subsidies for the payment of expenditure on medical care or hospitalization of the employee.