Angola – 2022 State Budget Law: highlight of tax measures

Inheritance and Gifts

The inheritance and gifts tax rates applicable to the transfer of movable and similar property are now as follows:

• 0.5% for movable property with a value of up to AOA 5,000,000.00 or 1% if higher, when the transfer occurs between spouses or in favor of descendants and ascendants; and

• 1% for movable property with a value of up to AOA 5,000,000.00 or 2% if higher, when the transfer takes place between any other persons.

VAT

New provisions introduced by the SB 2022:

• Exemption from VAT on the imports of goods aimed at gifts for philanthropic purposes or to mitigate the effects of natural calamities, namely, droughts, floods, storms, cyclones, earthquakes, pandemics and others of identical nature, provided that the respective purpose is duly recognized by the General Tax Administration (“Administração Geral Tributária” or “AGT”);

• The VAT rate is set at 7% for the provision of hotel and restaurant services. Requirements must be met: registration of real estate and motorised vehicles for the development of the activity; issuance of invoices through electronic means; filing of tax returns of the previous tax years;

• Certain products listed in Table Annex I of the SB 2022 are now taxed at the rates of 5% and 7%;

Measures already included in the 2021 SB and in force:

• Widening of the taxable basis on imports. VAT is now also charged on the amount of the import duties, taxes and ancillary expenses, among others;

• VAT at the rate of 14% applies on the transfer of goods and provision of services carried out in the context of the activity of exploitation and practice of betting and gaming and social entertainment, namely tickets, coupons or other goods or services that allow access to the games made available by taxable persons;

• The Angolan Tax Authorities can, in any circumstance, decide on the inclusion or exclusion of taxable persons from the obligation to captivate the tax, whenever justified reasons of protection of public revenues exist;

• VAT shall be paid until the last working day of the month following that to which the transactions relate;

• Concerning taxpayers covered by the simplified VAT regime, the following provisions are foreseen:

  • The regime applies to taxpayers with a turnover or volume of import operations of AOA 350,000,000 or lower, with reference to the previous 12 months;

  • Assessment of the tax due on a monthly basis by applying the rate of 7% to the turnover effectively generated by non-exempt transactions; self-assessment of VAT at the rate of 7% on the amount effectively paid, when acquiring services from non resident providers;

  • Entitlement to deduct 7% of the total tax paid on purchases and request a refund of the credit in their benefit;

  • When changing to the standard VAT regime, the entity is allowed to deduct the VAT incurred on goods aimed at being sold that have been acquired in the 12 months preceding the change and upon authorization from the AGT;

• Entities whose turnover or imports are equal or lower than AOA 10,000,000 are not subject to VAT;

• Entities under the standard VAT regime that carry out exclusively exempt operations, without the right to deduct, are required to pay Stamp Duty on the receipt at a rate of 7%; this also applies to entities under the simplified VAT regime in relation to the exempt operations that they carry out;

• The 7% rate referred to in the previous paragraph is not applicable to air transport services for passengers in international traffic and to the rental of real estate, these operations being subject to the rate defined in the Stamp Duty Code.

Measures already included in the 2021 SB that did not enter into force:

• On the receipts obtained at point-of-sales related with sales of goods and the provision of services carried out by VATable persons, VAT is withheld at a rate of 2.5%. Entities under the standard VAT regime and under the simplified VAT regime may deduct the total amount of the VAT withheld on their VAT return;

• Financial Banking Institutions are required to make automatic transfers the VAT withheld, complying with the deadlines and reporting obligations established.

We highlight the contents of Resolution 79/21, of 30 December, that provides that, within the scope of the implementation of the measure to reduce the VAT rate from 14% to 7%, sufficient time will be given to taxpayers to parameterize the management software for a period of 90 days, without penalties and interest.

Customs Duties

• Update of the thresholds concerning the waiver or the conditions to apple the simplified clearing procedure;

• Update of the customs duties and rates applicable to certain products as per Annex II of the SB 2022 law;

• It is again foreseen that the export of nationalized food, medicine, medical equipment and biosafety goods are subject to Customs Duties at the rate of 70%, calculated on the customs value.