Law no. 10/21 of 22 April, which amends the Private Investment Law (Law no. 10/18 of June 26) was recently published. The purpose of the new amendments is to make the private investment regime more attractive to investors and to streamline the investment procedure.
Among the most relevant changes introduced, we highlight the following:
Contractual Regime
In addition to the Prior Declaration Regime and the Special Regime, a Contractual Regime of investment was introduced. The terms and conditions for the implementation of the projects and the incentives and benefits to be granted under the private investment contracts may now be subject to negotiation between the sponsor of the investment project and the Angolan State. This new investment regime is available to private investments in any sector of activity.
Tax incentives
Tax incentives cease to be included in the Private Investment Law, which now provides that all private investors, regardless of the respective investment regime, will be entitled to the tax benefits set out in the Tax Benefits Code.
The Tax Benefits Code was in public consultation between September and October 2020, but is not yet published. It is expected that when this statute is enacted (probably in circa 3 months) it reproduces the previously applicable incentives for the Prior Declaration and Special regimes and creates new thresholds and limits for incentives for the new Contractual Regime.
The value of the investment and the jobs created are now included among the factors deemed relevant for the allocation of tax incentives.
Repatriation of funds
The need to prove the complete implementation of private investment projects as a condition of the private investors’ right to repatriate the product of their investment, such as dividends, has been removed. Foreign exchange regulations may have to be revised accordingly to ensure consistency with the Private Investment Law, as currently amended.
Other benefits aimed at streamlining and promoting private investment
Private investors are exempt from obtaining provisional licenses and other administrative authorizations for the purposes of implementing their private investment projects. The Private Investment Registration Certificate shall be sufficient for these purposes.
In investment projects where approvals and authorizations or any other administrative acts or formalities are deemed required, authorities must comply with the deadlines set out in the schedule of execution and implementation of the investment project. Approvals and authorizations are deemed tacitly granted if no decision is issued within the aforementioned deadlines.
Internal and external credit
Investors can resort to internal and external credit under the terms of the law, being the use of internal credit by external investors no longer dependent on the implementation of the respective investment projects.
Registration of former investments
Another important measure approved by Law no. 10/21 of 22 April is the possibility granted to foreign investors operating in Angola outside the umbrella of the Private Investment Law to register their investments with the relevant authorities in order to benefit from rights and incentives granted under the Private Investment Law, with the exception of tax benefits.
Law no. 10/21 of 22 April entered into force on the date of its publication, April 22, 2021
