Angola Regulatory System and Infrastructure
Regulatory
Angola’s ordinary corporate tax is 35 percent, with a reduced rate of 20 percent for agricultural and forestry enterprises. The government offers a variety of corporate tax exemptions, reductions, and exemptions from real estate taxes on land and buildings as investment incentives. Income tax for individual’s ranges from 1-40 percent for employees, and 3-60 percent for self employed professionals. Inheritance and gift taxes are also added along with a payroll tax for social security. The main indirect tax is manufacture’s sales tax with rates ranging from 5 percent to 50 percent on listed product (nationalencyclopedia.com).
Taxation:
Companies carrying out industrial and commercial activities in Angola are subject to income tax on all profits resulting from Angola. If the company has its headquarters in Angola, it will be hit with industrial tax on its profits derived from Angola and 1/3 of its gross income earned abroad. Under the new tax legislation, any income obtained outside of the country will be fully taxable. All companies, no matter if they have a permanent business in Angola, that perform contracts or subcontracts, are subject to industrial tax if the amounts paid to the companies are considered expenses for Industrial tax purposes. This will most likely be changed, because of the new definition of permanent establishment. This new definition also considers, as permanent establishment, the simple interpretation of services, if made by the presence in Angola of hired personnel, for more than 90 days within a year. This means that those companies that render services will be taxable under the general rules of the industrial tax code. Under the new legislation, capital income tax imposed on taxable dividends was raised to 10 percent. However, exemptions form industrial tax can be obtained from the Minister of Finance for new industries and investment projects in fundamental areas. The tax year is the same as the calendar
Angola’s ordinary corporate tax is 35 percent, with a reduced rate of 20 percent for agricultural and forestry enterprises. The government offers a variety of corporate tax exemptions, reductions, and exemptions from real estate taxes on land and buildings as investment incentives. Income tax for individual’s ranges from 1-40 percent for employees, and 3-60 percent for self employed professionals. Inheritance and gift taxes are also added along with a payroll tax for social security. The main indirect tax is manufacture’s sales tax with rates ranging from 5 percent to 50 percent on listed product (nationalencyclopedia.com).
Taxation:
Companies carrying out industrial and commercial activities in Angola are subject to income tax on all profits resulting from Angola. If the company has its headquarters in Angola, it will be hit with industrial tax on its profits derived from Angola and 1/3 of its gross income earned abroad. Under the new tax legislation, any income obtained outside of the country will be fully taxable. All companies, no matter if they have a permanent business in Angola, that perform contracts or subcontracts, are subject to industrial tax if the amounts paid to the companies are considered expenses for Industrial tax purposes. This will most likely be changed, because of the new definition of permanent establishment. This new definition also considers, as permanent establishment, the simple interpretation of services, if made by the presence in Angola of hired personnel, for more than 90 days within a year. This means that those companies that render services will be taxable under the general rules of the industrial tax code. Under the new legislation, capital income tax imposed on taxable dividends was raised to 10 percent. However, exemptions form industrial tax can be obtained from the Minister of Finance for new industries and investment projects in fundamental areas. The tax year is the same as the calendar
Cited: "Angola Information on Economic Freedom | Facts, Data, Analysis, Charts and More." Conservative Policy Research and Analysis | The Heritage Foundation. Web. 21 Nov. 2010. . "Angola Infrastructure, Power, and Communications, Information about Infrastructure, Power, and Communications in Angola." Encyclopedia of the Nations - Information about Countries of the World, United Nations, and World Leaders. Web. 21 Nov. 2010. . "Angola Investment Guides - Angolan Investment Profile." Somali Press. Web. 21 Nov. 2010. . "CIA - The World Factbook." Welcome to the CIA Web Site — Central Intelligence Agency. 9 Nov. 2010. Web. 21 Nov. 2010. . "(OTEXA) Market Reports/Tariffs." Market Reports/Tariffs. 11 Nov. 2009. Web. 21 Nov. 2010. 9