1. Introduction to Angola
Angola, officially known as the Republic of Angola, is a country located in Southern Africa. It is bordered by Namibia to the south, the Democratic Republic of the Congo to the north, Zambia to the east, and the Atlantic Ocean to the west. Angola covers an area of 1,246,700 square kilometers, making it the seventh-largest country in Africa. The country has a population of approximately 33 million people, with Luanda, the capital and largest city, being home to over 8 million residents.
Angola has a rich and complex history, having been inhabited for thousands of years by various Bantu-speaking peoples. The country was colonized by Portugal in the 16th century and remained under Portuguese rule for over 400 years. Angola gained independence in 1975 after a protracted war of liberation. Since then, the country has experienced a period of civil war and political instability, which ended in 2002.
2. Recent Economic Developments in Angola
Angola's economy is heavily dependent on oil production, which accounts for over 90% of the country's exports. In recent years, the Angolan economy has been impacted by the decline in global oil prices. The country has also been affected by the COVID-19 pandemic, which has led to a sharp decline in economic activity.
In 2021, Angola's economy contracted by 0.7%, following a contraction of 5.6% in 2020. The International Monetary Fund (IMF) projects that Angola's economy will grow by 3.2% in 2023 and 3.5% in 2024. The IMF also projects that inflation will decline from 24.4% in 2022 to 18.5% in 2023 and 12.5% in 2024.
The Angolan government has implemented a number of reforms in recent years to diversify the economy and reduce its dependence on oil. These reforms include promoting investment in agriculture, tourism, and manufacturing. The government has also taken steps to improve the business environment and attract foreign investment.
3. Latest Tax Law Changes in Angola
The Angolan government has made a number of changes to the country's tax laws in recent years. These changes include:
- The introduction of a new value-added tax (VAT) in 2019. The VAT is a consumption tax that is levied on the sale of goods and services.
- The reduction of the corporate income tax rate from 30% to 25% in 2020.
- The introduction of a new tax on digital services in 2021. The digital services tax is levied on the sale of digital services to Angolan consumers.
These changes are part of the Angolan government's efforts to modernize the tax system and increase tax revenue. The government has also taken steps to improve tax administration and reduce tax evasion.
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