In Angola 2007/2008 - (Page 30) (continued from page 29) Outlook Angola’s oil and diamond sectors will continue to represent the bulk of GDP for the foreseeable future. Crucial to Angola’s ongoing progress is ANIP’s work to promote private investment in targeted industry sectors and development zones, as well as the financing of infrastructure development by the recently established National Development Bank. Government officials are aware of the need for further improvements in the management of public finance – particularly in light of the goal of securing a rating for Angola’s debt, which will make it easier to raise money in global capital markets. However, economic policy makers walk a tightrope in their efforts to manage inflation and achieve exchange rate stability, while keeping an eye on how a stronger currency could negatively affect the competitiveness of non-oil exports. While significant challenges remain, global observers remain optimistic about the prospects for Angola’s continued progress on its grand economic plan. Source: KPMG Banking Survey Angola Tax Profile The provisions for Angola’s business tax rates are contained in the Corporate Income Tax Code of 1972 as amended by Law 18/92. Companies and self-employed individuals are subject to business income tax. In addition, domestic dividends, interest, and royalties are subject to withholding of an investment income tax under Law 7/97. Business Tax Rates A resident company is taxed on worldwide income. Non-resident companies that derive income in Angola are subject to the same tax rules as resident companies. Special tax provisions apply to companies engaged in petroleum and mining operations. Stamp Duty Under the Stamp Duty Regulations of 29 May 1945 and subsequent amendments, stamp duty applies to transactions, acts, deeds, documents, papers, receipts, and other transactions. In certain cases, the amount is fixed; in others, it is a percentage in the range of 0.3% to 10%. The most common stamp duty rate is 1%. Resident Companies Business Income Tax Capital Gains Dividends Repatriation of Profits Pursuant to the Currency Exchange Law, investors can repatriate distributed dividends and profits after deducting legal amortizations and paying taxes due in accordance with their proportional equity ownership in the company. Payments from asset liquidation, private investment agreements, compensation, royalties, and revenue from indirect investments related to technology transfer may be repatriated after payment of applicable taxes. Investments in diamonds, petroleum, and financial institutions are covered by separate legislation. Exchange Controls Angola’s central bank administers policies and procedures related to exchange controls pursuant to the Foreign Exchange Law of 1997. Under the law, Angolan-based foreign subsidiaries and representative offices may open foreign exchange bank accounts with Angolan-based banks, except for mining enterprises. Tax Incentives Special tax incentives are available for investment in seven targeted industry sectors and three development zones, as well as other relevant investments. These include tax holidays, reduced tax rates and import duties, and full deductions on expenditures for infrastructure. Double Taxation Treaties Angola has not entered into any double taxation treaties with another country. For more details on Angola’s tax structure, please refer to KPMG’s Angola Fiscal Guide 2006, which is available at www.kpmg.co.ao. Source: KPMG Fiscal Guide Standard rate 35% Same as Business Income Tax rate (35%) Domestic source – 10% Foreign source – same as Business Income Tax rate (35%) Loans – 15% Corporate bonds – 10% Domestic source – 10% Foreign source – exempt Same as Business Income Tax rate (35%) Same as Business Income Tax rate (35%) Interest Royalties Fees Rent 30 http://www.kpmg.co.ao
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