Capital Gains Taxation in Angola
Angola's capital gains tax system is designed to tax profits realized from the sale or disposal of capital assets. The legal framework governing this taxation is outlined in the Angolan Tax Code, specifically in Article 14, which defines taxable income and includes capital gains as a source of income subject to taxation.
Definition of Capital Gains
In Angola, capital gains are defined as the difference between the selling price of a capital asset and its acquisition cost. Capital assets include:
- Real estate properties
- Stocks and securities
- Bonds and debentures
- Business assets
There is no distinction made between short-term and long-term capital gains for tax purposes.
Calculation of Taxable Capital Gains
Taxable capital gains are calculated using the following formula:
Capital Gain = Selling Price - Acquisition Cost - Expenses
Adjustments or deductions may be allowed in the calculation of the gain, including expenses related to the sale (e.g., brokerage fees, legal fees) and any improvements made to the asset during ownership.
Tax Rates
Capital gains in Angola are taxed at a flat rate of 15%. This rate applies to all categories of capital gains, regardless of the nature of the asset disposed of or the holding period.
Legal Framework
The taxation of capital gains in Angola is governed by the following articles of the Angolan Tax Code:
- Article 14: Defines taxable income and includes capital gains as a source of income subject to taxation.
- Article 23: Specifies the flat tax rate of 15% applicable to capital gains.
Policy Objectives
The Angolan government's policy objectives behind the capital gains tax system are to:
- Generate revenue for the government
- Encourage investment and economic growth
- Ensure that individuals and businesses contribute their fair share of tax on profits realized from investments and asset disposals
By adhering to these regulations, taxpayers in Angola can accurately calculate their taxable capital gains and fulfill their tax obligations.
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