Angola - 2025 General State Budget proposal

Personal Income Tax (PIT)

• The exemption from PIT for employment income up to Kz100,000.00 (one hundred thousand kwanzas) is maintained.

• The taxation at a rate of 6.5% on the volume of sales of goods and services not subject to withholding tax at source is maintained for Group C taxpayers whose turnover in the 2024 fiscal year is equal to or less than Kz10,000,000 (ten million kwanzas).

• Group C taxpayers engaged in agricultural, forestry, livestock, and fishing activities, with a turnover exceeding Kz10,000,000 (ten million kwanzas), are taxed at a rate of 10%.

Corporate Income Tax (CIT)

• The rules provided in the 2024 SB regarding the fiscal implications applicable to the revaluation of tangible, intangible assets, and investments in real estate at fair value remain.

• The possibility of the fiscal deductibility of costs incurred by taxpayers in the agricultural and livestock sector in investments in infrastructure necessary for the production and distribution of products remains for a period of five years, subject to prior approval by the General Tax Administration.

Amendment to the Tax Enforcement Code

• The concept of an unsettled tax situation for taxpayers who are in breach of any obligation provided for in the Tax Laws remains.

• The existing practice of prohibiting taxpayers in irregular situations from proceeding with the customs clearance of their goods is incorporated into the diploma.

Exemption from Stamp Tax in the Interbank Money Market and on Capital Increases

• Operations in the Interbank Money Market are exempt from Stamp Tax  as provided for in Item 16 of the Table Annexed to the Stamp Tax Code, which refers to various financing operations.
• Capital increases carried out by legally constituted commercial companies are exempt from Stamp Tax  as provided for in Item 7.3 of the said table.

Exceptional Registration Regularization Regime

• Individual taxpayers registered for more than 5 years who have not been active for an equal period can regularize their registration without paying fines for not submitting declarations.

• Taxpayers who voluntarily register their properties with the Tax Administration during the 2025 fiscal year may be exempt from paying Property Tax and/or fines and interest due for the 2019 to 2023 fiscal years, subject to meeting certain requirements provided for in the draft law.

VAT

• The VAT rate on the import or transfer of industrial equipment by the manufacturer is reduced to 5%, upon request by the taxpayer and approval by the AGT.

• In the event of a positive change in turnover or import transactions exceeding the thresholds of the exclusion and simplified regime, taxable persons are now required to change the VAT regime by the end of the month following the import or the transaction that gave rise to the change in turnover.

Benefits for Authorized Economic Operators and National and International Organizations or Entities

The provisions of the 2024 State Budget on benefits for Authorized Economic Operators are republished, namely:

 Importers and exporters:

• Possibility of paying customs duties in installments; 

• 60-day deadline for submitting the Declaration of Exclusivity Commitment for goods imported into the Production Sector;

• Exemption from presenting a guarantee in the customs clearance process and the possibility of customs clearance of goods with deferred payment of duties and other due customs charges.

 Official Dispatchers and Freight Forwarders:

• Reduction in the number of physical and documentary inspections; 

• Priority treatment if selected for physical and documentary inspections; and

• Exemption from the presentation of a guarantee in transit processes

Benefits are introduced for the implementation of projects of public interest by International and National Organizations or Entities, namely:

• Exemption from customs duties, property tax, VAT and stamp duty for projects created by the holder of executive power, subject to prior approval by the Ministry of Finance. 

• For the exemption from VAT, the status of captivating agent applies to the above-mentioned projects.

Changes to the Customs Tariff

The proposal also presents a set of changes to import duties on some food products and raw materials, such as:

• Reduction of import duties on cotton fabrics from 30% to 20%; and,

• Implementation of import duties on rice weighing less than 10kg at the rate of 30%.