Laws no. 4/19, no. 5/19 and no. 6/19 were published last April 18 and introduced several amendments to the Industrial Tax Code, the Petroleum Activities Law and to the Petroleum Activities Taxation Law.

The amendments introduced, namely in respect of the Industrial Tax Code, may have a significant impact in the activity of the companies operating in Angola, which must be timely and adequately addressed.

From the amendments introduced to the Industrial Tax Code, we understand the following should be highlighted:

• Introduction of a limit of up to 7% per year for the tax consideration of the profits and losses derived from foreign exchange differences associated with “fixed assets and liabilities” – Articles 13 and 14;
• Limitation of the interest deductibility from shareholder’s loans up to the annual average interest reference rate established by the Angolan Central Bank (such interests are currently not deductible for tax purposes) – Article 16;
• Revocation of the autonomous taxation of unduly documented expenses (2%) and non-documented expenses (4%) – Article 17:
• Tax deductibility of the cost with Real Estate Tax from non-leased property – Article 18;
• Provisional tax payment on sales – introduction of the option to only consider in the basis for the respective computation the sales of first semester of the year effectively collected – Article 66;
• The provisional tax payment on sales is not mandatory for taxpayers that have computed tax loss in the previous fiscal year – Article 66. 

To access the relevant Laws, please refer to the attached document.