Meet the Law – Angola – State Budget for 2022

On January 1st the law that approves the General State Budget for the financial year of 2022 – Law No. 32/21 of 30th December, entered into force. Such law establishes the following tax and customs aspects:

I.    Value Added Tax “VAT”

1. Exempts from the payment of VAT imports of goods intended to mitigate the effects of calamity, as well as those intended for philanthropic purposes, subject to recognition by the Tax Authority.
2. Reduces from 14% to 7% the VAT rate of hotel and restaurant service providers, subject to the requirements imposed by law.
3. Fixes between 5% and 7% the VAT rate on imports and transfers of goods of the various products listed in Annex I of the aforementioned law.
4. VAT that has not been deducted by the taxpayer cannot be accepted as a tax cost in terms of Industrial Tax.
5. The rules on VAT applying to games of chance, simplified regime and automatic terminal payments enacted by the State Budget for 2021 are maintained with introduction of clarification points.

II.    Special Gambling Tax

1. A Special Gambling Tax exemption is enacted for prizes earned in social games, occurred virtually and territorially, whose amounts of are equal to or less than AOA 250,000.00 (c. USD 445.00).
2. For Prizes that exceed the aforementioned amount a reduced rate of 20% will be applied, contrary to the 25% provided for in the Gaming Activity Law.
3. A single rate of 15% of the Special Gambling Tax is enacted for prizes obtained in virtual, banked or unbanked games of chance.

III.    Industrial Tax on the Value of Accidental Services

Establishes, temporarily for the fiscal year 2022, the 6.5% rate of withholding Industrial Tax on services provided by non-resident entities, regardless of the sector of activity.

IV.    Tax on Motor Vehicles "IVM"

Reduces the tax rate, expressed as a fixed amount, for ships and aircrafts, in its various groups.

V.    Customs

1. The import limit for small value products and personal effects is changed from AOA 880,000 (c. USD 1,423.83) to AOA 1,000,000.00 (c. USD 1,779.78).
2. Goods whose customs value is between AOA 1,000,001.00 (c. USD 1,779.79) and AOA 2,000,000.00 (c. USD 3,559.57) are subject to a simplified import regime and maintain the rate of 16% of customs duties. These values change the established amounts of AOA 880,001.00 (c. USD 1,423.83) and AOA 1,320,000 (c. USD 2,349.32) respectively.