Angola´s Tax Benefits Code will enter into force on May 14, including new benefits for investment, according to official legal database Legis-PALOP+TL.
Law No. 8/22 of April 14, establishes that Tax benefits can be granted with a maximum duration of 10 years to investments under either the prior declaration or special regime, such as:
⦁ Reductions in Property Tax rates for the acquisition of properties intended for the office and for the establishment of the investment, variable according to the respective location in the country´s development zones, namely Zones A (Luanda Province and the Headquarters Municipalities of the Provinces of Benguela, Huíla and the Municipality of Lobito), Zone B (Provinces of Bié, Bengo, Cuanza-Norte, Cuanza-Sul, Huambo, Namibe and the remaining Municipalities of the Provinces of Benguela and Huíla), Zone C (Province Cuando Cubango, Cunene, Lunda-Norte, Lunda-Sul, Malanje, Moxico, Uíge and Zaire) and Zone D (Cabinda Province);
⦁ Reduction of Industrial Tax rates, the Capital Investment Tax levied on the distribution of profits and dividends and the Stamp Duty.
Legal Update/ Angola: Credit to the Economy by commercial banks
Also contemplated are tax benefits applicable to investment projects included in the contractual regime and to public-private partnerships:
⦁ Reduction of Industrial Tax, Urban Property Tax, Capital Investment Tax and Stamp Duty, for a period of up to 15 years;
⦁ Tax credit of up to 50% of the investment value, for a period of up to 10 years;
⦁ Increase in depreciation and reintegration rates of up to 80%, for a maximum period of 10 years, for projects located in development zones B, C and D;
⦁ With the exception of Value Added Tax, benefits may also be included such as: deferral of tax payment time; and the consideration as a cost 80% of the value of the investment expenses for the creation of infrastructure, necessary for the execution of the project, which by their nature must be provided by the State.
As of May 14, 2022, tax benefits may also be granted: to companies that carry out investment operations in the Free Trade Zones, with a duration coinciding with that of the respective zones; and also tax benefits for MSMEs, capitalization of companies, restructuring of companies, tax benefits related to the environment, tax benefits related to job creation, internship and professional training and tax benefits for the financial system and capital markets.
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