In brief
Presidential Legislative Decree No. 4/22, of 23 July 2022, published in the Official Gazette, approves the new Special Tax Regime applicable to the Province of Cabinda.
Said decree establishes the following:
- The regime is applicable to companies domiciled in the Province of Cabinda, to properties installed therein and to tax residents in that province;
- The regime is not applicable to the Oil Industry;
- Light passenger vehicles and alcoholic beverages are now covered by the special regime in Cabinda, and subject to customs duties at a rate of 2%;
- The provision of port services as well as public water distribution is now subject to a 2% VAT rate;
- The rate of customs duties and VAT due on the import and transmission of food products is now 1%;
- In the customs clearance of import of goods, the fees for the provision of services are always due;
- Food products from neighboring countries, brought within the scope of border trade, by the populations, for their own consumption, in quantities that do not present commercial characteristics, are exempt from customs duties and other taxes;
- Agricultural activities and activities in the industrial sector will be taxed under the Corporate Income Tax at the rates of 3% and 10%, respectively. The rate applicable to the agricultural sector may be adjusted if there are changes associated with the general rate;
- The distribution of profits or dividends deliberated by companies in the agricultural sector and industrial sector will be subject to Investment Income Tax at the rate of 5%;
- Property Tax on income and on properties should be assessed at the rates of 10% and 0.05% respectively;
- Transfers of real estate are taxed at the rate of 1% of Property Tax rate;
- In cases where the general or special legislation grants broader tax benefits than those established in this law, the more advantageous legislation applies.
This diploma entered into force on the date of its publication (July 23, 2022).