The General State Budget for 2021 was enacted by means of Law No. 42/20, of 31 December 2020 (“State Budget Law”), which entered into force on 1 January 2021.

A number of important tax changes were introduced, among which we would highlight the following:

1- Industrial Tax WHT

During 2021 the Industrial Tax withholding rate applicable to services rendered to petroleum operators by non-resident entities without head offices, effective management or permanent establishment in Angola will be reduced from 15% to 6.5%.

2- Valued Added Tax (“VAT”)

• The exploitation and practice of games of chance and social entertainment, as well as the relevant commissions and all related transactions, will be subject to VAT at the rate of 14%.
• The VAT rate applicable to the importation of agricultural input products is set at 5%.
• A VAT withholding rate of 2.5% applies on receipts obtained from automatic payment terminals, related to the transfer of goods and services rendered by taxable persons. Taxpayers may deduct all the VAT withheld in the VAT periodic return.
• A new simplified regime for VAT has been approved for taxpayers with an annual turnover (or exports) of up to Kz 350,000,000. These taxpayers are subject to a monthly VAT rate of 7% applicable on the income actually received from non-exempt transactions. This new simplified regime for VAT is similar to the former VAT transitory regime.

3- Stamp duty on receipts

VAT taxpayers carrying out VAT-exempt operations are required to pay Stamp Duty on receipts at the rate of 7%.

Statute of limitations

Exceptionally, the statute of limitations for the assessment of taxes pertaining to year 2015 will lapse on 31 December 2021 (thus extending the standard 5-year statute of limitations to 6 years).

For more information on this Tax Alert please contact:
[email protected]