Approved by Law No. 32/21, of 30 December and in effect since 1 January 2022, the State Budget for this year, although maintaining some trends already verified in the document that precedes it, presents changes in terms of tax of special relevance.
We highlight the following tax changes:
VAT
The proposed amendment to reduce the Value Added Tax (VAT) rate was confirmed, from 14% to 7% in the case of operations involving the import and transmission of certain essential consumer goods, fishing vessels (artisanal and small and medium-sized) and instruments related to fishing, certain inputs and items of machinery used in agricultural activity.
Hotel and restaurant services are now also taxed at a rate of 7% as long as they comply with the legally established obligations (registration of properties and motor vehicles for the development of the activity, issuance of invoices through electronic systems and delivery of tax returns from previous years).
The products listed in Annex I are now taxed at a rate of 5%. Among others, this list includes some products that are part of the basic basket.
Additionally, imports of goods intended to be offered for philanthropic purposes or to mitigate the effects of natural disasters, such as droughts, floods, storms, cyclones, earthquakes, pandemics and others of a similar nature, are now exempt from paying VAT provided that the purposes for which they are intended are duly recognized by the General Tax Administration (AGT).
Industrial taxes
The tax rate collected through withholding tax on accidental services provided by non-resident legal persons and without a permanent establishment in Angola to entities residing in Angolan territory is now 6.5% (previously was 15%).
VAT which, according to the VAT Code, is not deducted should not be considered as a deductible cost in terms of Industrial Tax.
VAT taxable persons, included in the Simplified Regime, who carry out exempt transactions are now obliged to pay the Stamp Duty on the Discharge Receipt at the rate of 7%, referring to item 23.3 of the table annexed to the Stamp Duty Code, regarding these operations,
Inheritance and Donation Tax
Inheritance and Donation Tax rates are set at 0.5% in the case of transfers of movable and equivalent assets with a value up to Kz 5,000,000.00 and 1% for those with a value greater than this, provided that the transfer takes place between spouses or in favor of descendants and ascendants; and 1% in the case of movable assets with a value up to Kz 5,000,000.00 and 2% for those with a higher value, provided that the transmission takes place between any other persons.
Others
The customs duties related to some of the products listed in Annex II, as well as the rates applicable thereto, were reviewed. The thresholds that determine the application or exemption from the application of the simplified dispatch procedure were also revised.
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