Angola: Public Finance Sustainability Law
São Tomé and Príncipe – Binding Information: Consumption Tax. Lease Agreements.
October 29, 2020
Angola Public Consultation – Draft of amendments to the VAT Code
October 31, 2020
On 30th October Angola published the Public Finance Sustainability Law, which establishes the Principles, Rules, and Instruments that govern the implementation of the State Tax Policy, transparency, and the management of Public Finances, aiming at budgetary and financial stability and sustainability.
The Public Finance Sustainability Law is a legal instrument that contributes to the better implementation of the Tax Policy, providing greater fiscal discipline, reinforcing the transfer, and providing greater predictability of the Tax Policy in line with the instruments of the National Planning System.
With regard to tax rules, Public Finance Sustainability Law establishes the following:
Level of indebtedness – the tax policy should be formulated and implemented to ensure the sustainability of public finances, ensuring the objective of consistently and systematically reducing, over the long term, the ratio of the Stock of Debt to Gross Domestic Product, to a value equal to or less than 60 percent.
Level of non-oil primary fiscal deficit – should be consistently reduced until it is set at or below 5% (five percent) of Gross Domestic Product over the next 5 years, and should remain at that level in subsequent years.
