The General State Budget for 2022 was enacted by means of Law No. 32/21, of 30 December 2021 (“State Budget Law”), which entered into force on 1 January 2022. In general terms, the State Budget Law maintains the tax provisions introduced for the 2021 State Budget, but it also contains important new features, notably in respect of withholding of Industrial Tax and VAT. We present here the main tax and customs measures applicable in 2022:
 

1 - Industrial Tax

• The single rate of withholding of Industrial Tax is set at 6.5%, applicable to services that entities without a registered office, effective management or permanent establishment in Angola provide to entities resident in Angola, regardless of their sector of activity.
• VAT not deducted under the relevant Code is not considered as a deductible cost for the purposes of Industrial Tax.
   

2 - Value Added Tax

• A VAT rate of 7% is established for the provision of hotel and restaurant services, provided that certain conditions are met.
• The importation of goods intended for donation for philanthropic purposes or to mitigate the effects of natural disasters is exempt from VAT, once recognized by the Tax Authorities.
   

3 - Stamp Duty on receipts

• The obligation to pay Stamp Duty on payment receipts at the rate of 7%, imposed on certain VAT taxpayers, is not applicable to air transport services for international passengers nor the renting of real estate, which are both subject to the rate defined in the Stamp Duty Code.
   

4 - Special Gaming Tax

• The Special Gaming Tax rates for certain prizes have been changed, with an exemption established for prizes equal to or less than Kz 250,000.00 from social games, territorially based or online.
   

5 - Motor Vehicle Tax

• The rates of Motor Vehicle Tax applicable to ships and aircraft have also been changed.
   

6 - Customs Provisions

• The amounts have been updated for clearance procedure and customs charges for goods and items for personal use.
• An exemption from customs charges has been established for the importation of goods intended to attenuate, prevent and contain the propagation of the effects of natural and non-natural disasters.
• Various customs benefits will now be granted to Authorized Economic Operators.
   

7 - Several measures implemented in the 2021 State Budget are maintained, notably: (i) VAT rate of 14% applicable to the exploration and practice of games of chance and social entertainment; (ii) withholding VAT rate of 2.5% on receipts obtained at automatic payment terminals; (iii) simplified VAT regime for taxpayers with an annual turnover (or exports) of up to Kz 350,000,000.00 – subject to a monthly VAT rate of 7% on income effectively received from non-exempt transactions; and (iv) Stamp Duty due on payment receipts at the rate of 7% applicable to VAT taxpayers who carry out certain transactions exempt from VAT.

For more information on this Tax Alert please contact:
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