Angola Regulatory System and Infrastructure

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Regulatory

Angola’s ordinary corporate tax is 35 percent, with a reduced rate of 20 percent for agricultural and forestry enterprises. The government offers a variety of corporate tax exemptions, reductions, and exemptions from real estate taxes on land and buildings as investment incentives.

Income tax for individual’s ranges from 1-40 percent for employees, and 3-60 percent for self employed professionals. Inheritance and gift taxes are also added along with a payroll tax for social security. The main indirect tax is manufacture’s sales tax with rates ranging from 5 percent to 50 percent on listed product (nationalencyclopedia.com).

Taxation:

Companies carrying out industrial and commercial activities in Angola are subject to income tax on all profits resulting from Angola. If the company has its headquarters in Angola, it will be hit with industrial tax on its profits derived from Angola and 1/3 of its gross income earned abroad. Under the new tax legislation, any income obtained outside of the country will be fully taxable. All companies, no matter if they have a permanent business in Angola, that perform contracts or subcontracts, are subject to industrial tax if the amounts paid to the companies are considered expenses for Industrial tax purposes. This will most likely be changed, because of the new definition of permanent establishment. This new definition also considers, as permanent establishment, the simple interpretation of services, if made by the presence in Angola of hired personnel, for more than 90 days within a year. This means that those companies that render services will be taxable under the general rules of the industrial tax code. Under the new legislation, capital income tax imposed on taxable dividends was raised to 10 percent. However, exemptions form industrial tax can be obtained from the Minister of Finance for new industries and investment projects in fundamental areas. The tax year is the same as the calendar year. Companies other than Angola companies operating abroad must file tax returns together with their financial statements by May 31st in the year following the tax year. Angolan companies operating abroad must file by July 31st, with advance payments of at least 50 percent of the prior years tax liability must be made by December 10th of the tax year. Final payment of tax is due on September 15th of the following year (somalipress.com).

Personal income tax –

All individuals receiving employment income for working in Angola are subject to income tax. Taxable income includes all employment income, like wages, salaries, leave payments, fees, gratuities, bonuses, premiums or allowances paid or granted b reason of employment, in cash or check. Director’s fees are usually treated as individual taxable income, regarded in the same way as compensation income. Under the tax reform, members of the boards of Angolan companies will always be considered as residents in Angola for tax purposes. Employer withholding satisfies income taxes on employees, and employees do not need to file returns. No resident individuals are assessed on only Angolan source income. The employer or other payer withholds the amount due and is liable for the tax (somalipress.com). Intellectual Property:

Angola’s legal system is very inefficient, and corruption plays a major roll in that. Legal fees are high, and most businesses avoid taking commercial disputes to court. The state owns all land, but long term renewable leases are available for most urban and some non urban land. Property registration is a long process and very expensive. Angola is ranked 114th out of 155 countries in the 2009 International Property Rights Index (heritage.org). The Ministry of Industry protects trademarks, patents, and designs under Law 3/92. The Minister of Culture administers Law 4//90, protecting authorship, literary, and artistic rights. Angola is part of the World Intellectual Property Organization...
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