In late December 2020, the Angolan Parliament approved the 2021 draft State Budget. The Law 42/20 published in the Angolan Official Gazette means that these changes have now entered into force.
As per Law 42/20, the changes entered into force on 1 January 2021.
Amongst several fiscal measures, 7 significant amendments include:
1. Decrease of Industrial Tax WHT Rate
During the tax year 2021, there will be a reduction of the industrial withholding tax rate on services rendered by non-resident companies to oil companies with residency or permanent establishment in Angola.
The withholding tax rate decreases from 15% to 6.5%.
2. Simplified VAT Regime
For taxable persons with a turnover or importations equal to or lower than KZ 350 Million, a simplified Value Added Tax (VAT) regime will apply. These taxpayers will be subject to VAT at a flat rate of 7%. This will be computed based on their monthly turnover with a deduction allowed for 7% of the total amount of VAT on inputs.
3. Stamp Duty
This applies only to a taxable person subject to the general or simplified VAT regime and who only carries out VAT-exempt transactions. As of 1 January 2021, they will be subject to Stamp Duty on receipts at the rate of 7%.
4. VAT on Receivables Obtained Via Automatic Payment Terminals
A new VAT at the rate of 2.5% will be charged on receivables obtained via automatic payment terminals from the supply of goods or services carried out by taxable persons.
5. VAT on Importation and Supply of Goods
A new VAT at the rate of 5% will be charged for the importation and supply of good included in the revised Annex I of the Angolan VAT Code.
6. Statute of Limitation Extended
For any 2015 assessments, the statute of limitation applicable is extended until 31 December 2021.
7. Decrease of Inheritance and Donation Tax Rate
There is a decrease in the inheritance and donation tax rates applicable to transfers of movable goods. The 30% maximum rate is lowered to 2%.