In Angola 2007/2008 - (Page 10) VESTMENT LAW Angola’s New Legal Framework Facilitates and Protects Private Investment Recognizing that private sector investment is the key to economic growth, the Angolan government has adopted investor-friendly legal and regulatory reforms that are creating an investment climate that is more secure and transparent. Angola’s 2003 Private Investment Law provides the basic legal framework for all investment outside of the energy, diamond, telecommunications and financial sectors. The law simplifies the investment application process, lowers the minimum capital requirements for investment, and guarantees the repatriation of profits. It also guarantees foreign investors equal treatment under the law, and provides a variety of tax and customs duties incentives. Foreign investors also are free to establish fully-owned subsidiaries in many sectors. Repatriating Profits Profits and dividends on an investment may be repatriated. Reforms in the banking sector have facilitated this process by improving access to foreign exchange. Investors can now remit funds through local commercial banks. Tax and Customs Incentives Foreign investments of USD 100,000 or more (or domestic investments of USD 50,000 or more) may qualify for tax and customs duty incentives. Investments in farming and animal breeding; processing; fishing and derivatives; civil construction; health and education; energy and water infrastructure; roads and railroads; ports and airports; telecommunications; and heavy cargo and passenger equipment are eligible for incentives. The government will also provide tax and customs incentives based on the location of the investment, with greater incentives offered to priority development zones. Depending on the location, customs duties exemptions can range from 3-6 years. Exemptions from industrial taxes can range from 8-15 years, while capital investments may be exempt from capital gains taxes for 5 years or as many as 15 years if the investment is in a priority development zone. Industrial tax exemptions are also available for investments that create 50 or more full-time jobs for Angolan nationals. Protecting Investments Angola’s private investment law prohibits nationalization of private investor assets and guarantees public non-interference in the management of private companies. It also protects and upholds intellectual property rights, licenses, and professional, banking and commercial secrecy codes. Investors are guaranteed the right to due process of law. Angola is a member of a number of international organizations and conventions that protect private investment. In addition, Angola has enacted a number of other domestic laws and regulations that provide increased security for investors. • Angola is a member of the Multilateral Investment Guarantee Agency (MIGA) that provides private investors with guarantees and dispute settlement assistance. • Angola’s Land and Urban Planning Law clarifies land ownership and tenure, providing security to property investment. Under the law, all land ultimately belongs 10
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