Law no. 15/23, of 29 December, approves the General State Budget (GSB) for 2024. The GSB contains important changes to the Angolan tax system. Firstly, it creates a new Special Contribution on Foreign Exchange Transactions and modifies relevant rules in the Customs Law, the Labour Income Tax Law, the Industrial Tax Law and the Tax Enforcement Law.
GSB also approves benefits for Authorised Economic Operators.
The rates of Inheritance and Gift Tax on movable property and Motor Vehicle Tax have also been changed.
1. Special Contribution on Foreign Exchange Transactions
- The Special Contribution on Foreign Exchange Transactions is now imposed on transfers made under contracts for services, technical assistance, consultancy, management, capital transactions, and unilateral transfers. This does not apply to transfers meant for covering health and education expenses, as long as they are directly paid to the service providers. Additionally, it excludes transfers related to dividends, loaned capital, and interest;
- This Contribution is applicable to individuals and legal entities residing or having their registered office in Angola, who request a financial institution to carry out transfers falling under this regime;
- The applicable rate is 2.5%, for individuals and 10% for companies. The tax base is determined by the amount transferred, in Kwanza;
- Financial institutions are tasked with paying and submitting the tax during the processing of the overseas transfer. Failure to fulfil this obligation by financial institutions may result in a fine equivalent to the special contribution amount, in addition to other potential sanctions;
- The state, excluding public institutes and companies, as well as diamond and oil investment companies, are exempt from this contribution.
2. Customs Law
Amendment to the Customs Law
- The distribution system for the proceeds from the auctioning of goods in the customs enclosure has been modified to adhere to the following order:
a) discharge of unpaid customs duties and taxes;
b) 10% of storage costs;
c) publication costs;
d) costs of the proceedings.
- This percentage is awarded to storage service providers who have a compliant tax situation. If the amount equivalent to 10 percent of the auction surpasses the storage costs, the percentage is decreased, not surpassing the limit of the amount owed. Furthermore, the organization of auctions, including electronic auctions, can be regulated by the Head of the Executive Branch, in accordance with the Customs Law rules, with necessary adjustments.
Payment of customs debts by instalments
- The rules of the General Tax Law for payment in instalments are extended to customs debt in two cases: (a) when there is a deferral of payment of customs duties and taxes on clearance of imported goods, and (b) in the case of additional tax resulting from post-import audit.
3. Special Gambling Tax
- According to the Special Gaming Tax Law, prizes up to Kz 200,000.00 are exempt, and taxation applies only to the amount exceeding this threshold. This exemption excludes random combinations used for advertising promotions, raffles, draws, and competitions;
- In land-based games, taxation comprises two instalments: the first, ranging from 1.1% (single stalls) to 2.2% (double stalls) of the Initial Working Capital, and the second, amounting to 25%of the gross revenue from the stalls;
- The minimum Initial Working Capital for gaming tables varies between Kz 500,000.00 and Kz 1,000,000.00, depending on whether the gaming table is general or VIP, respectively;
- The minimum Initial Working Capital for vending machines in general rooms is Kz 150,000.00, while for vending machines in VIP lounges, the minimum amount is Kz 500,000.00;
- Vending machines adhere to the banked games system, with criteria similar to those practiced in simple stalls. The capital associated with each operated machine is determined individually or, upon request of the operators, by groups of machines. Tax is applicable based on the established capital, even if not all machines within a group are operational;
- On the other hand, the tax rate for land-based online games, including bingo, is 25%;
- Regarding revenue from social games, the rates are 20% for land-based and 25% for online games;
- Concerning prizes, games of chance are subject to a 10% special tax, while social games are subject to a 20% tax, irrespective of their basis.
4. Benefits for authorised economic operators
- In 2024, Authorized Economic Operators certified as importers and exporters will enjoy benefits such as:
a) payment in instalments of customs duties;
b) deadline extended to 60 days upon presentation of the Declaration of Exclusivity Commitment;
c) waiver of guarantee on customs clearance;
d) the possibility of deferring payment of customs duties and taxes.
- The following benefits are granted to Authorised Economic Operators certified as Official Brokers and Freight Forwarders:
a) reducing the number of physical and documentary inspections;
b) priority treatment in inspections;
c) guarantee waived in transit cases.
5. Amendment to the Labour Income Tax Law (LIT)
- As far as LIT is concerned, the tax base of Group C taxpayers, with a turnover of up to Kz 10,000,000.00 in 2023, will now correspond to the volume of sales of goods and services not subject to withholding tax, and subject to a 6.5% LIT rate;
- For LIT taxpayers who calculate tax base per the accounting regime, regardless of the volume of invoicing, the applicable rules are those of the Industrial Tax, with the necessary adaptations;
- In addition, income up to Kz 100,000.00 is exempt from LIT and an updated LIT table is published, reducing the number of brackets accordingly and adjusting taxation to the new exemption level.
6. Amendment to the Industrial Tax (IT) Law
- Concerning IT, for the tax year 2023, changes in assets and latent capital gains or losses arising from the adjustment of fixed assets to fair value will not impact the calculation of IT taxable income. However, amortization costs on revalued assets are not considered for tax purposes;
- The implementation of these new rules is contingent upon adherence to accounting standards. The sums arising from the revaluation are recorded in dedicated accounts, and if the revaluation affects equity, its utilization for dividend distribution is prohibited;
- Electronic submission of tax returns is now compulsory for taxpayers under both the general and simplified regimes;
- In addition, the costs incurred by taxable persons in the agricultural and livestock sectors in relation to infrastructures needed to dispose of production benefiting communities can be amortised over 5 years, subject to prior authorisation from the Tax Administration and appropriate documentation;
7. Change in the rate of inheritance and gift tax on movable property
- The Inheritance and Gift Tax rates applicable to transfers of movable and similar assets are now as follows:
8. Changes to motor vehicle duty rates
- The Motor Vehicle Excise Duty rates for boats and aircraft have been changed to the following:
Boats:
Aircraft:
9. Amendment to the Tax Enforcement Law
- Taxpayers who have failed to fulfil any obligation laid down in tax laws are now considered not to have a compliant tax situation.
10. Exceptional regularisation of registration
- Taxpayers who have been registered for more than five years and have not engaged in any activities during that period can now update their registration without incurring fines for non-submission of returns.
11. Exceptional regime for the regularisation of Social Security debts by State owned companies in the process of liquidation and extinguished
- State owned companies undergoing liquidation will be excused from interest and fines if they voluntarily disclose and settle their outstanding Social Security contributions;
- The liquidating entity must apply for inclusion in this regime, and eligibility is granted if the declaration and payment are completed by December 31, 2024;
- This special arrangement is specific to companies that have ceased operations or are in the process of winding up, with forgiveness limited to interest and fines only.
12. Suspension and restriction of rights and benefits
- As part of the budget consolidation process in 2024, the GSB approves measures to temporarily suspend and limit rights and benefits for beneficiaries associated with entities within the budgetary system and companies receiving resources from the General State Budget.
