Angola – Corporate Income Tax Code Amended

The Corporate Income Tax (CIT) Code has been amended by Law No. 26/2020, of 20 July 2020, which will enter into force on August 20th, 2020.

Amongst the enacted amendments, we highlight the following:

• Introduction of a provision clarifying that the exercise of the liberal profession in a corporate or associative form falls within the CIT scope.
• Creation of 2 new tax regimes – general regime and simplified regime -, in line with the VAT regime (eliminating the former taxation Groups A, B, and C).
• Elimination of the provision under which rents taxed under Urban Property Tax should not subject to CIT. Maintenance of the rule establishing that income subject to Property Tax shall be deducted from the taxable income for CIT purposes.
• Tax-loss carryforward period extended to 5 years (previously 3 years).
• Reduction of the general tax rate to 25% (previously 30%).
• Reduction of the rate applied to income from activities related to agricultural activity, livestock, etc., to 10% (previously 15%)
• Increase in the final withholding tax rate applicable to services provided by entities without head offices, domicile, permanent establishment or effective management in Angola to 15% (previously 6.5%). Services provided by resident entities are still subject to 6.5%.
• Income from banking, insurance, telecommunications operators, and Angolan oil companies, is subject to a single rate of 35%.
• Revision of the penalties for failure to comply with reporting obligations. GTU will keep monitoring these matters closely and will provide you with the latest information through our updated system which gives online access to all the tax information you need.