Law No. 20/20, approving the Property Tax (PT) Code and repealing the Urban Property Tax (UPT) Code, was published on 9 July 2020.

We highlight the two main innovations of the PT when compared with the former UPT:

• Scope of application – The UPT only applied to urban properties, whereas the PT also applies to land and plots for construction.
• Rate – The UPT provided for a single rate of 0.5% on properties having a tax value in excess of AOA 5,000,000. The PT sets forth progressive rates up to 0.6%, and charges 50% of the tax on unoccupied properties.

This new Law will take effect on 8 August 2020.

Also published on 9 July 2020 was Law No. 21/20, which approved substantial and relevant amendments to the General Tax Code (approved by Law No. 21/14, of 22 October 2014).

Here are the most noteworthy amendments:

• Introduction of a general anti-abuse rule, which allows the transaction to the disregarded for tax purposes;
• Binding information is henceforth of a personal nature, meaning that other taxpayers may not rely thereon;
• The filing of amended tax returns is dependent upon the payment of a fee;
• Bank secrecy may be lifted in certain situations provided for in the law, including instances of failure to comply with return-filing obligations;
• General extension to 30 days of the time periods afforded to the taxpayers (e.g. right to be heard, challenge of taxation acts, hierarchical appeals, etc.).

It should be noted that the above amendments took effect on 9 July 2020.

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