Angola: General State Budget for 2021:Main Tax Changes
by Bruno Xavier de Pina, Isaque Ramos, Sónia Reis
Published: February, 2021
Submission: February, 2021
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Angola's General State Budget for 2021 (“GSB 2021”) came into force on 1 January 2021 and was approved by Law 42/20 of 31 December. It introduced the following tax changes:
Value Added Tax
• Definition of the scope of application of Value Added Tax (“VAT”)
Individuals or legal entities are now excluded from the scope of VAT when their turnover or import transactions are no more than Kz (AOA) 10 million.
• Creation of the Simplified System
Scope of application: The Simplified System applies to taxable persons with a turnover or import transactions of no more than Kz (AOA) 350 million during the previous 12 months. This system does not apply to taxpayers, regardless of their turnover or import transactions, that operate in the manufacturing industry.
Calculation of the tax
Taxable persons covered by this system will have to calculate the tax due on a monthly basis by applying the 7% rate to the turnover actually received from non-exempt transactions, including advances or advance payments.
They are also required to assess tax at the rate of 7% on the value of services provided by non-resident entities.
Taxable persons covered by this system are entitled to deduct 7% of the total tax borne.
Refund of tax credit
Taxable persons covered by this system must apply for the refund of the tax credit in accordance with the VAT Code Regulations, adapted as necessary.
Transition from the Simplified System to the General System
The GSB also provides that, in cases of transition from the Simplified System to the General System, the taxable person can deduct input tax on goods contained in stocks intended for sale that were acquired in the 12 months preceding that transition. This right of deduction does not include services acquired and incorporated in the cost of goods intended for sale.
• Receipts obtained at automatic payment terminals
The GSB provides that VAT must be withheld at the rate of 2.5% on receipts at automatic payment terminals relating to transfers of goods and services by taxable persons.
This amount may be deducted in full, either by the persons covered by the General System or by the persons covered by the Simplified System, respectively, in their periodic tax returns and simplified tax returns.
These amounts must be transferred automatically by the Banking Financial Institutions to the Single Treasury Account within 24 hours of the closing of the accounting period of the automatic payment machines.
These institutions must also submit a monthly file to the General Tax Administration containing a summary of the operations processed by the terminals.
Within 120 days of the entry into force of the 2021 GSB, these institutions must, under penalty of a fine, ensure that the automatic payment terminals made available to their customers withhold the necessary amount.
The GSB 2021 maintains the taxation at the rate of 5% on the importation listed in the table in Annex I of the VAT Code – the basic food basket. This rate was determined by Law 31/20 of 11 August, which approved the revision of the General State Budget for 2020 (“GSB 2020 Revision”).
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