Earlier this year, Angola’s National Assembly approved the country’s 2018 State Budget. Introduced by President João Lourenço, and supported by 144 MPs, the AKz 9.6 trillion budget aims to boost to Angola’s education sector, with AKz 34.9 billion to hire 20,000 new teachers at both the primary and secondary levels, and AKz 34.9 billion allocated to the health sector to hire more than 200 nurses and diagnostic technicians, and 1,500 physicians.
Enacted by Law No. 3/18 on 1 March 2018, Angola’s budget has specific tax consequences for payroll departments across the country, so employers should be aware of the following legislative factors:
The 2018 Budget grants Angola’s president special authorisation to make certain amendments to tax legislation, specifically relating to Capital Appliance Tax (CAT), Consumption Tax (CT), and Stamp Duty (SD), and to the Customs Duty Code. The important details of those amendments are as follows:
- Customs debt: A mechanism has been introduced which allows for the payment of customs debt in installments.
- Standalone CGT: Income tax rules have been clarified allow for the stand-alone taxation of any capital gains which derive from transfers (to and from individuals) of regulated market securities.
- CT reverse charge: The consumption tax reverse charge mechanism currently applicable to the oil sector has been extended to the financial, telecommunications, and (non-oil) mining sectors.
- CT base: The base for consumption tax charges has been widened to include advertising and publicity contracts, and transportation by air and sea routes within Angolan territory.
- CAT exemption: The Capital Appliance Tax exemption regime for the distribution of dividends has been redefined in favour of collective persons. Those persons must be subject to Industrial Tax and should hold resident-status in Angola.
- Stamp Duty: The SD base has been extended to include the self-employed, contracts with non-resident foreign employees, and any type of service contract.
The 10% levy, known as the Special Contribution on Current Invisible Foreign Exchange Transactions, remains in place in 2018. The levy is applicable to transfers relating to the supply of management services contracts, or the supply of foreign technical assistance.
For more advice and insight into Angola’s tax and payroll landscape, browse activpayroll’s dedicated Global Insight Guide.