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Amendments of the Industrial Tax Code in Angola

Amendments of the Industrial Tax Code in Angola

The Industrial Tax Code was amended by Law no. 26/20, dated 20 July 2020.

The main changes, amongst others, are:

 The implementation of two taxation regimes (the General Regime and the Simplified Regime) and accounting becomes mandatory for companies in General Regime;

 Interest on loans from holders of capital or supplies are deductible costs; in this case, only the portion exceeding the average annual interest rate of reference set by the Central Bank shall be added to taxable profit;

 Unduly and non-documented costs continue to be treated as non-deductible costs from the taxable amount, but they are not anymore subject to an additional autonomous taxation (respectively 2% and 4% of the value);

 No deductions of the incomes subject to property tax or to capital gain tax shall be permitted to taxpayers whose taxable amount is determined by Tax Authority in the absence, insufficiency or lack of elements necessary to determine the Tax Amount to be paid;

 The losses recorded in a given financial year shall be deducted, up to 5 years, from the taxable amount, except for taxpayers which tax amounts have been determined by Tax Authority in the absence, insufficiency or lack of elements necessary to determine the Tax Amount to be paid;

 The taxpayers of the general regime shall submit electronically, before the last labour day of May, each year (or physically file the return);

 The Simplified Regime applies to taxpayers not subject to VAT, with the exception of establishment which are subsidiaries or branches of companies with their head office abroad;

 Taxpayers subject to the Simplified Regime shall present annually, until the last working day of April, the Simplified Declaration Form or Record book of purchase, sales and services provided;

 The Industrial Tax rate is reduced to 25%; but for Angolan oil companies as defined by the Presidential Legislative Decree n°3/12 dated 16 March the rate is 35%. A final tax at a rate of 15% will apply on accidental services provided by entities without head office, domicile, permanent establishment or effective management offices in Angola;

 The industrial tax of the taxpayers of the General Regime is subject to provisional selfassessment and payment is due until the last labour day of August;

 Taxpayers subject to Industrial Tax, with head offices, effective management or permanent establishment in Angola, providing services of any kind, are subject to 6.50% withholding tax payment, to be paid until the last labour day of the month following the withholding;

 Final settlement of Industrial Tax and payment must be submitted until the last labour day of April of each year for taxpayers subject to the Simplified Regime, and until the last labour day of May for taxpayers subject to the General Regime;

 The amount of penalties for non-compliance with reporting obligations, misstatements, omissions, and other irregularities have also been modified.

 

 

 

The contents of this publication are based on our knowledge and interpretation of current law and practice which are likely to
change over time. The publication is provided for information purposes only and does not constitute professional advice of any
kind. The information provided in the publication should not be used as a substitute for consultation with professional advisers.
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