• Elimination of Taxation Groups A and B and implementation of two distinct regimes - the general regime (based on organized accounting) and the simplified regime (applicable to taxpayers with a gross annual turnover lower than or equal to USD 250,000).
• Tax losses - the deduction period is extended to 5 years (instead of 3 years)
• Reserves used for reinvestment - the deduction period is extended to 5 years (instead of 3 years), with a deductibility limitation: 40% for reinvestments in Luanda, Lobito and provincial capitals and 80% for the remaining zones.
• Change of tax rates
  • General rate: 25% (previously 30%)
  • Agricultural sector income: 10% (formerly 30%)
  • Income from banking, insurance, telecommunications and Angolan oil companies: 35% (previously 30%)
  • Services supplied by non-resident entities: 15% (previously 6.5%)
• Amount of fines applicable to non-compliance with reporting obligations - all amounts of fines have been doubled in relation to the amounts previously provided for.

These changes will take effect on August 19, 2020.

Should you wish to receive additional information on this alert, please contact:
[email protected]