Law no. 42/40, of 31 December 2020, approved the General State Budget (GSB) for 2021.
Among the measures introduced, highlight for the following:
Corporate Income Tax – Withholding tax
- In 2021, for Corporate Income Tax (“Imposto Industrial”) purposes, the withholding tax rate applicable to services provided by non-resident entities to oil operators is set at 6.5%.
Inheritance and gifts tax – Rates
- The rates of inheritance and gifts tax applicable on transfers of goods and similar assets are set at:
- 0.5% when the value of the goods is lower or equal to Kz 5 000 000,00 or 1% when the value of the goods is higher than Kz 5 000 000,00 and the transmission occurs between spouses or in favor of descendants and ascendants and
- 1% when the value of the goods is lower or equal to Kz 5 000 000,00 or 2% when the value of the goods is higher than Kz 5 000 000,00 and the transmission occurs between any other people.
Tax obligations – Statute of limitation
- The statute of limitations for the 2015 fiscal year was exceptionally extended until 31 December 2021.
- A new VAT rate of 5% is foreseen in some operations (goods listed Annex I of the VAT Code and agricultural inputs).
- Widening of the taxable basis on imports. VAT is now also charged on the amount of the import duties, taxes or fees due on import and ancillary expenses, among others..
- Taxation of exploitation and practice of games of chance and social entertainment.
- VAT shall be paid until the last working day of the month following that to which the transactions relates.
- Implementation of a simplified VAT regime applicable to entities with a turnover or import operations of AOA 350,000,000 or lower with reference to the previous 12 months.
- These entities:
- Shall assess the tax due on a monthly basis by applying a 7% rate on the turnover effectively generated by non-exempt transactions;
- Shall self-assess VAT at the rate of 7% on the amount effectively paid, when acquiring services from non-resident entities;
- May deduct 7% of the total VAT incurred;
- May request a refund of the credit in their favor.
- In respect of exempt transactions, entities subject to the simplified regime that carry out exempt operations are obliged, in relation to these operations, to pay Stamp Duty on the receipt at a rate of 7%.
- Entities liable to the simplified regime who carry out exempt operations are allowed a deduction on the income tax assessed in an amount corresponding to the Stamp Duty paid.
- Entities operating in the manufacturing industry are mandatorily covered by the standard VAT regime.
- When changing from the simplified to the standard VAT regime, the entity is allowed to deduct the VAT incurred goods aimed at being sold that have been acquired in the 12 months preceding the change and upon authorization from the Angola Tax Authority.
- Entities liable to the standard VAT regime that carry out exclusively exempt operations are required to pay Stamp Duty on the receipt at a rate of 7%.
- 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 and the simplified VAT regime may deduct the total amount of the VAT withheld on their VAT return.
- The entities whose turnover or imports is equal or lower than AOA 10,000,000 are not subject to VAT.
- The Financial Banking Institutions shall ensure the automatic transfer to the Treasury Account of the VAT withheld, being obliged to comply with the applicable deadlines and declarative obligations.