Angola Tax Alert
Junho 13, 2024
Tax regulations, particularly those introduced by Law No. 15/23 of December 29, 2023
01 February 2024 // Newsletter_1/2024
Angola
In this newsletter, we bring to your attention the latest developments in Angolan tax regulations, particularly those introduced by Law No. 15/23 of December 29, 2023, approving the General State Budget (GSB 2024), effective as of January 1, 2024. The General Tax Administration, recognizing the significance of these changes, issued Circular No. 004 GACA/GJ/AGT/2024 on January 23, aiming to provide clarity on the primary fiscal measures for the 2024 fiscal year.
I. Special Contribution on Foreign Exchange Operations (CEOFC)
The CEOFC is introduced, applying to various transactions abroad, including service contracts, technical assistance, consultancy, management, capital operations, and unilateral operations.
Individuals or legal entities domiciled or having their registered office in Angola who apply to a financial institution for transfers abroad under: i) service contracts; ii) technical assistance contracts; iii) consultancy and management contracts; iv) capital operations and v) unilateral transfers are subject to the CEOFC.
Rates for legal entities and individuals are set at 10% and 2.5%, respectively.
The calculation basis corresponds to the amount to be transferred, in the national currency, at the exchange rate in force at the time of the transfer, and the assessment and payment of the contribution is made by the financial institutions at the time the transfer is processed, the latter having to ensure the settlement and delivery of the CEOC to the Tax Administration.
II. Personal Income Tax Exemption Threshold Increase
The Personal Income Tax Exemption threshold for labour income sees an increase from Kz 70,000.00 to Kz 100,000.00.
III. Accounting Update for Fair Value of Fixed Assets
Updates to the fair value of fixed assets are now fiscally neutral for the 2023 fiscal year, with certain conditions applied, ensuring compliance with accounting standards.
IV. Electronic Submission of Income Tax Declarations
For the 2024 fiscal year, electronic submission of Income Tax Declarations is mandatory for taxpayers subject to Corporate Income Tax in both general and simplified regimes.
V. Tax Incentives for the Agricultural and Livestock Sector
Tax incentives are introduced for the agricultural and livestock sector, allowing for the depreciation of costs incurred in necessary infrastructure investments over a period of 5 years, subject to General Tax Administration approval.
VI. Exceptional Cadastre Regularization
Individual taxpayers registered for over 5 years and inactive during the same period can regularize their registrations without fines and interest by submitting a letter to the Tax Office of Domicile.
At PI Advisory, we are dedicated to assisting you in navigating these changes seamlessly.
Should you have any queries or require further clarification, please do not hesitate to reach out to our experienced team.
| Maurilson Ramos
Partner | Head of Advisory |
Simão Nunes Manager | Business Support & Outsourcing |