Policies and tax benefits
Policies and tax benefits
Tax system
The Angolan tax system is applicable to the whole country.
1. Industrial Tax
(Law No. 19/14 of 22 October, with the amendments introduced by Law No. 26/20, of 20 July)
The Industrial Tax (II) is levied on profits obtained in the course of any activity of a commercial or industrial nature, even if incidental.
The followings are always considered as activities of a commercial or industrial nature:
Farming, aquaculture, production of poultry, forestry, livestock or fish;
Mediation, agency or representation in the execution of contracts of any nature;
Activities subject to supervision by the insurance and gaming supervisory body, the National Bank of Angola and the Commission of Capital Markets;
The management of portfolios of real estate, shares or other securities;
Activities of foundations, autonomous funds, cooperatives and charitable associations;
The exercise of liberal professions in a corporate or associative format.
Rate:
The general Industrial Tax rate is 25%. For income derived exclusively from agricultural, aquaculture, apiculture, poultry, fishing, forestry and livestock activities, the single rate is 10%.
For income from activities in the banking and insurance sector, telecommunications operators and Angolan oil companies, a single rate of 35% is applied.
Source: AGT Angola
2. Motor Vehicles Tax (IVM)
This tax is levied on motor vehicles, enrolled or registered, in accordance with the legislation, with the respective competent public services, namely:
Light and heavy automobiles;
Motorcycles, mopeds, tricycles or quadricycles;
Aircrafts;
Vessels.
Table 1 (Motorcycles, mopeds, tricycles, quadricycles, light and heavy automobiles)
| Item | Category | Engine capacity | Value (AKZ) |
| 1 | Motorcycles/Mopeds/Tricycles/Quadricycles I | Up to 125 cc | 1,850.00 |
| 2 | Motorcycles/Mopeds/Tricycles/Quadricycles II | From 126 to 450 cc | 2,450.00 |
| 3 | Motorcycles/Mopeds/Tricycles/Quadricycles III | From 451 cc | 3,050.00 |
| 4 | Light vehicles I | Up to 1,500 cc | 4,300.00 |
| 5 | Light vehicles II | From 1,501 to 1,800 cc | 4,900.00 |
| 6 | Light vehicles III | From 1801 to 2,400 cc | 6,750.00 |
| 7 | Light vehicles IV | From 2,401 cc | 9,200.00 |
| 8 | Heavy vehicles I | Up to 10 tons | 10,450.00 |
| 9 | Heavy vehicles II | Over 10 tons | 15,350.00 |
Table 2 (Vessels)
| Group | Gross tonnage | Propulsive power (HP) | Unitary value (AKZ) |
| 1 | Up to 2 | From 25 to 50 | 250,000.00 |
| Over 50 | 375,000.00 | ||
| 2 | From 3 to 10 | Up to 50 | 562,500.00 |
| Over 50 | 787,500.00 | ||
| 3 | From 11 to 30 | Up to 100 | 1,023,750.00 |
| Over 100 | 1,330,875.00 | ||
| 4 | From 31 to 50 | Up to 100 | 1,730,138.00 |
| Over 100 | 2,249,179.00 | ||
| 5 | From 51 to 70 | Up to 100 | 2,923,933.00 |
| Over | 3,508,719.00 | ||
| 6 | Over 71 | Up to 100 | 4,210,463.00 |
| Over 100 | 5,052,556.00 |
Table 3 (Aircrafts)
| Group | Maximum take-off weight (Kg) | Value (AKZ) |
| 1 | Up to 600 | 500,000.00 |
| 2 | Over 600 to 1,000 | 688,680.00 |
| 3 | Over 1,000 to 1,400 | 938,650.00 |
| 4 | Over 1,400 to 1,800 | 1,315,522.00 |
| 5 | Over 1,800 to 2,500 | 1,831,405.00 |
| 6 | Over 4,200 to 5,700 | 2,535,351.00 |
| 7 | Over 5,700 to 10,000 | 4,569,594.00 |
| 9 | Over 10,000 to 20,000 | 4,877,272.00 |
| 10 | Over 20,000 | 5,146,684.00 |
The Tax on Motor Vehicles is liquidated and paid between January and June of each year, regarding the prior fiscal year.
3. Tax on Employment Income (“IRT”)
The Tax on Employment Income (IRT) is levied on the income from self-employment (liberal, commercial and industrial professionals) or employment by others (dependent workers).
For the purposes of this tax, employment income comprises all remuneration received as earnings, salaries, wages, retainers, fees, gratuities, subsidies, bonuses, commissions, participations, attendance payments, emoluments, participation in fines, costs, and other fringe benefits.
Rate:
The following rates apply to income subject to the IRT:
| Group A
|
The constant rates shown in the Table annexed to the IRT Code |
| Group B
|
A 25% rate is applied to taxable income not subject to withholding tax
A 6.5% rate is applied to taxable income subject to withholding tax |
| Group C | A 25% rate is applied to taxable income not subject to withholding tax (twenty-five percent)
A 6.5% rate is applied to taxable income subject to withholding tax |
4. Investment Income Tax (“IAC”)
The Investment Income Tax (IAC) is levied on income from investments. The incomes are divided into two sections: A and B, respectively.
Rate:
The Investment Income Tax rates are 5%, 10% and 15%.
| Section A | This section includes interest on borrowed capital, regardless of the form of presentation; income from credit agreements and income arising from deferral of an instalment or late payment. |
| Section B | Profits attributable to partners and shareholders (residents or not in Angola) of commercial and civil companies, under a commercial form and cooperatives; interest, amortisation premiums and other forms of remuneration of bonds and participation certificates issued by any company, as well as remuneration of Treasury Bills, Treasury Bonds and Central bank Securities; the amount of interest, amortisation premiums and other forms of remuneration of bonds and participation certificates, Treasury Bills, Treasury Bonds and Central Bank Securities, from the period between final maturity or issue or first placement and its transfer; interest on shareholders, loans or allowances from partners or shareholders to companies; balance of interest from current accounts; amount awarded to companies as compensation for the suspension of their business; profits in the form of a profit share; issue of shares with subscription rights; royalties; games of chance, prizes, raffles, lotteries or betting; capital gains on the sale of shares or other instruments that generate income subject to IAC, provided that they are not obtained from an activity subject to Industrial Tax or IRT. |
| Tax | The facts included in Section A are taxed at a rate of 15%, while the facts included in Section B are, as a rule, taxed at a rate of 10%, except in the cases of income admitted to trading on a regulated market and incomes awarded as compensation for the suspension of business, in which case a rate of 5% is applied. |
5. Property Tax (IP)
The Property Tax (IP) is levied on the asset value or income from rental of urban and rural buildings, as well as on gratuitous or onerous transfers of real estate, regardless of the title by which such transfers are made.
Rate:
The Property Tax rate applicable to urban buildings, except building plots, is determined according to the following table:
| No. | Asset value (Akz) | Rate | Fixed value |
| 1 | Up to 5,000,000.00 | 0.1% | |
| 2 | From 5,000,000.00 to 6,000,000.00 | Kz: 5,000.00 | |
| 3 | More than 6,000,000.00 over the excess of 5,000,000.00 | 0.5% |
The Property Tax rate applicable to building plots is 0.6%;
The Property Tax rate applicable to rented buildings is 25%;
The Property Tax rate applicable to the transfer of real estate is 2%;
Buildings which have been unoccupied for more than one year, as well as building plots for which the criteria of effective useful exploitation are not met, for three consecutive years or six interpolated years, counting from the date of the CIP’s entry in force, its granting, occupation or last transfer, are subject to an additional taxation of 50% on the tax due.
6. Special Consumption Tax
(Law No. 8/19 of 24 April)
The Special Consumption Tax (IEC) is levied on goods referred to in the object listed in the IEC Code, produced in national territory, imported and released for consumption, even if they are from illicit activities.
Rate:
IEC rates are those available in the tables annexed to the Special Consumption Tax Code.
https://www.ucm.minfin.gov.ao/cs/groups/public/documents/document/aw4x/ntc2/~edisp/minfin1576200.pdf
7. Stamp duty (IS)
Stamp Duty is levied on all acts, contracts, documents, securities, books, papers, operations and other facts set out in the table annexed to the Code or in special laws.
Notaries, registrars from the civil registry office, the companies house and the land’s registry office, credit institutions, finance companies, lessors and sub-lessors, tenants and sub-tenants, insurers, insured parties (regarding the sum of the insurance premium or other amounts resulting from contracts with foreign insurance companies whose risk is located in Angola) and transferors are obliged to pay Stamp Duty to the State.
Rate:
The rates are those set out in the table annexed to the Code, expressed in absolute value or as a percentage.
8. Value Added Tax
The Value Added Tax (VAT) is levied on the transfer of goods and provision of services performed within national territory, for consideration, by a taxable person acting as such, as well as on the import of goods.
Rate:
Value Added Tax rates are as follows:
14% as a general rate applicable to all transactions carried out by taxable persons under the general regime;
7% on the actual receipts of taxable persons under the simplified regime;
5% for import transactions and the transfer of various goods listed in the table in Annex I of the Value Added Tax Code, as well as for agricultural inputs;
2% for the import and transfer of goods carried out in Cabinda Province.
9. Special Contribution on Exchange Transactions of Invisible Currents (“CEOCIC”)
The CEOCIC is levied on bank transfers made to foreign countries within the scope of technical assistance service provision or management contracts.
The applicable rate is 10% on the value of the transfer made to a foreign country.
The payer of the banking operation is responsible for its settlement at a Tax Office, prior to the request of the operation.
Source:
- AGT Angola
- American Chamber of Commerce in Angola (AmCham Angola) and Private Investment and Export Promotion Agency of Angola – The Angolan Investment Guide
Incentives
Tax and customs benefits are granted to private investment projects, according to the investment regime they fall under.
1.Prior Declaration Regime: applicable to private investments done outside the sectors considered as priority according to the Private Investment Law.
| Term | 2 years |
| Taxes | Percentage reduction |
| Industrial | 20% |
| Stamp | 50% |
| Investment income | 25% |
2. Special Regime: applicable to investments made in priority activity sectors and tax benefits are granted according to the development zone in which they are located.
| Term | Zone A | Zone B | Zone C | Zone D | Other benefits
Zones B, C and D |
| 2 years | 4 years | 8 years | 8 years | ||
| Taxes | Percentage reduction | ||||
| Industrial | 20% | 60% | 80% | 40% | Reduction of 50% for a period of 4 years of amortisation and reintegration rates. |
| Investment income | 25% | 60% | 80% | 40% | |
| Urban property | N/A | 50% | 75% | 37.5% | |
| SISA Tax | 50% | 75% | 85% | 42.5% | |
Source:
- American Chamber of Commerce in Angola (AmCham Angola) and Private Investment and Export Promotion Agency of Angola – The Angolan Investment Guide
- AGT Angola