Specific Taxes in Angola
Angola's tax system extends beyond corporate and personal income taxes, encompassing a diverse range of specific taxes that contribute to the country's fiscal landscape. These taxes are levied on various activities, transactions, and assets, serving specific purposes and policy objectives.
Value-Added Tax (VAT)
VAT is a consumption tax imposed on the sale of goods and services. It is a comprehensive tax that applies to most business transactions, with a standard rate of 14%. Certain essential goods and services, such as food and medicine, are exempt from VAT.
Property Tax
Property tax is an annual levy on immovable property, including land, buildings, and other structures. The tax is based on the property's assessed value, which is determined by factors such as location, size, and amenities.
Environmental Taxes
Angola has implemented environmental taxes to discourage harmful practices and promote sustainable development. These taxes target activities that contribute to pollution, waste generation, and natural resource depletion. The rates and scope of environmental taxes vary depending on the specific activity or substance being taxed.
Stamp Duty
Stamp duty is a tax levied on legal documents and transactions, such as property transfers, share transfers, and contracts. The tax is typically a fixed amount or a percentage of the document's value.
Capital Gains Tax
Capital gains tax is imposed on profits realized from the sale of capital assets, such as real estate, stocks, and bonds. The tax rate is 10%, and certain exemptions apply, such as gains from the sale of a primary residence.
Customs Duties
Customs duties are taxes levied on imports and exports of goods. The rates and scope of customs duties vary depending on the type of goods being traded. These taxes serve to protect domestic industries and generate revenue for the government.
Taxpayers Subject to Specific Taxes
The specific taxes in Angola apply to a wide range of taxpayers, including:
- VAT: Businesses engaged in the supply of goods and services
- Property Tax: Property owners, including individuals, companies, and trusts
- Environmental Taxes: Companies and individuals engaged in activities with environmental impacts
- Stamp Duty: Parties involved in transactions subject to stamp duty, such as property buyers, shareholders, and parties to contracts
- Capital Gains Tax: Individuals or entities realizing gains from the sale of capital assets
- Customs Duties: Importers and exporters engaged in international trade
Purpose and Rationale
The specific taxes in Angola serve various purposes and policy objectives:
- VAT: VAT generates revenue for the government, which is used to fund public services and infrastructure development. It also promotes economic growth and fiscal stability.
- Property Tax: Property tax contributes to local government budgets and supports infrastructure development. It also helps regulate property ownership and discourage speculative investment.
- Environmental Taxes: Environmental taxes aim to internalize the costs of environmental damage and encourage sustainable practices. Revenue from these taxes may be used for environmental protection measures and conservation efforts.
- Stamp Duty: Stamp duty revenue contributes to government revenue and may be allocated to various public services and initiatives.
- Capital Gains Tax: Capital gains tax helps ensure fairness in the tax system by taxing gains from asset appreciation. Revenue may be used for general government expenditure.
- Customs Duties: Customs duties generate revenue for the government and protect domestic industries by regulating international trade.
Legal Framework
The specific taxes in Angola are established and regulated by various legal statutes, including:
- VAT: Law No. 7/19 of 2019 on Value-Added Tax
- Property Tax: Law No. 10/14 of 2004 on Property Tax
- Environmental Taxes: Law No. 5/12 of 2008 on Environmental Taxes
- Stamp Duty: Law No. 14/14 of 2014 on Stamp Duty
- Capital Gains Tax: Law No. 17/14 of 2014 on Capital Gains Tax
- Customs Duties: Law No. 12/14 of 2014 on Customs Duties
These legal statutes outline the obligations, rates, and procedures for the collection and enforcement of specific taxes in Angola.
If delving into the depths of Angolan tax rules and regulations isn't your style, and you'd rather have experts take the reins, then Heavnn is here to help.
Let us simplify your tax planning journey. Access Heavnn's blend of professional expertise and cutting-edge technology by clicking the button below.
